Suning Appliance Co Ltd<002024>, one of the largest privately-owned electrical appliance retailers in China, kicked off the construction of its logistics base in Chengdu, southwestern China's Sichuan province.

Suning will invest a total of RMB 300 million in the new base, which will cover an area of 131 Mu in the Chengdu Economic and Technological Development Zone.

The new logistics base is the fourth large-scale modern logistics base set up by Suning in China, following similar centers in Nanjing, Beijing and Hangzhou. It will provide integrated services such as logistics, after-sale service, customer service and training.

The move is in line with Suning's plan to expand business in Sichuan Province. The Chinese electrical appliance retailer expects to have 50 chain stores in the province by the end of 2010, with estimated sales revenue of RMB 5 billion.

Suning currently has about 850 chain stores in more than 200 Chinese cities, and its total sales totaled up to RMB 100 billion.