Tesco is planning to build a £75m distribution depot in West Lothian which will create 1,400 jobs.
The new development will cost £75m and create 1,400 jobs
The plant is being built in Livingston. It will replace two existing depots in Livingston and Dundee.
Union officials are in talks with Tesco management over its plans to cut 400 jobs in Dundee.
West Lothian Council's enterprise convener Willie Dunn welcomed the new investment which he said was another major boost to the area's economy.
The distribution centre will be built on the site of the former NEC factory at Livingston where about 1,000 people used to be employed.
Tesco hopes it will open in the summer of 2007.
"This is excellent news for West Lothian," Mr Dunn said. "It is another major boost for the local economy."
He said the proposal would be given "careful consideration" once a detailed planning application was received.
"We are confident this will be the first of several new developments on this regenerated site which will bring more jobs to West Lothian," he added.