Amazon.com Inc. will open a distribution center in the northern Brazilian state of Pernambuco in 2020, Reuters reported Dec. 12, citing a company statement.
The new site will be Amazon's second facility in the country, the report said. The e-commerce company opened its first in-house fulfillment and delivery network in Brazil about a year ago, according to Reuters.
It was reported in January that Amazon's efforts to build its own fulfillment and delivery network in the country have been delayed by challenges including tax and logistics issues and difficult relations with some vendors.
The latest development comes about three months after Reuters reported that Amazon rolled out its Prime subscription service in Brazil, a move that is expected to challenge local rivals Magazine Luiza SA and MercadoLibre Inc.
"Today's announcement marks our long-term commitment with Brazil and, mostly, with our customers all over the country," Amazon's Brazilian country manager, Alex Szapiro, reportedly said.
Amazon's investment in the new facility was not disclosed, but Reuters said the site will be located in Cabo de Santo Agostinho, a municipality near Pernambuco's capital, Recife.
The report added that operations at the site are expected to commence in the first half of 2020.