BESSEMER, AL-Dollar General Corp. has elected to build its tenth distribution center here just outside Birmingham. The discount retailer will invest $60 million in the facility, which will be located on a 106-acre site at Alabama 150 and Lakeshore Parkway.

Dollar General has broken ground on the 1-million-square-foot facility, which will eventually employ 650 people. The distribution center is slated to open in February 2012 and will serve 500 stores in Alabama, Florida, Georgia and other states.

John Flanigan, executive vice president of Dollar General’s global supply chain, says the location is a great strategic fit for the company’s expansion plans. This year, the retailer plans to open about 625 new stores and enter three new states: Connecticut; New Hampshire; and Nevada. Last year, it opened 600 stores. Today, it operates more than 9,300 stores in 35 states.

Currently, Dollar General’s stores are supported by nine distribution centers located strategically throughout the chain’s geographic footprint. The facilities are located in Florida, Indiana, Kentucky, Mississippi, Missouri, Oklahoma, Ohio, South Carolina and Virginia.

It’s been more than five years since Dollar General has opened a new distribution center. The most recent one, located in Marion, IN, became operational in 2006. The 1.1-million-square-foot facility serves 1,000 stores

Of the existing distribution centers, Dollar General owns six and leases the other three. The retailer also leases additional temporary warehouse space to support its distribution needs.

Last year, Dollar General updated its existing distribution facilities with the rollout of a new voice pick system that allows warehouse employees to communicate with warehouse software systems using speech recognition.

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