China’s e-commerce giant JD.com (JD) will invest 2.5 billion yuan ($398.1 million) to establish the second phase of its “Yazhou 1” project in Shenyang, Northeast China’s Liaoning province, according to information from the Northeast China headquarter of JD on April 9.

The project is to establish a warehouse logistics and settlement center in Yuhong district of Shenyang to serve the whole Northeast China region. The center will provide services involving order handling, packaging, distribution and delivery for the e-commerce platform of JD.

Constructions of the center will last about 18 months, and it will start by the end of April, according to Sun Xuezheng, director of JD’s logistics company in Northeast China region.

The annual volume of business transactions in the center is anticipated to exceed 20 billion yuan when it starts operations; and it will contribute 150 million yuan of taxes for the local government.

“We appreciate the efforts of the Shenyang government made to provide a fast channel for JD to build the warehouse logistics and settlement center,” said Sun.

The whole process, from making a decision to build a Shenyang center to sign agreements with the local government, from obtaining the land use approval to start constructions, costs less than four months.

Up to now, JD has finished fix-asset investment at values of 2.22 billion yuan in Shenyang. In the following three years, JD will sustain to invest around 8 billion yuan in the city.