H-E-B Proposes $700 Million Distribution and Production Hub on San Antonio's East Side

Texas grocery chain H-E-B has announced plans for a $700 million expansion of its manufacturing and supply chain operations, targeting a site it already owns on the East Side of San Antonio. The project, which represents the company's largest-ever investment in its manufacturing and supply chain division, could begin construction as early as this year, with facilities projected to start operations by 2028.

The preliminary plans for the Foster Road site include building a new bakery, a refrigerated warehouse, and a transportation building, alongside expanding an existing manufacturing plant. H-E-B officials estimate the expansion will create 720 jobs by 2028, with the potential to add another 500 positions over the subsequent decade. The site currently features a manufacturing center and a 2-million-square-foot warehouse that support nearly 1,400 jobs.

While H-E-B Chief Supply Chain Officer Carson Landsgard noted that plans are still being developed, the company expects the project to improve its capacity to serve its growing store network. H-E-B has owned the Foster Road property for nearly a decade, investing more than $445 million into the location prior to this new proposal. The expansion comes amid broader growth for the retailer, which is also developing supply chain facilities in Buda and Valley View to support its ongoing expansion in North Texas.