By Gabriela Mello
SAO PAULO (Reuters) - Amazon.com Inc (O:AMZN) said on Thursday it will open a distribution center in the northeastern state of Pernambuco, its second in Brazil, strengthening its logistics infrastructure to speed up deliveries and ultimately expand its footprint.
The move comes almost a year after the U.S. e-commerce giant launched its first in-house fulfillment and delivery network in Brazil, posing a challenge to local retailers and other international players like Mercado Libre (O:MELI).
It also follows the introduction of Amazon's Prime subscription service offering unlimited nationwide free shipping to Brazilian consumers.
"Today's announcement marks our long-term commitment with Brazil and, mostly, with our customers all over the country," Amazon's Brazilian country manager, Alex Szapiro, said in a statement.
The company did not disclose how much is investing in the new facility. It will be located in Cabo de Santo Agostinho, a municipality not far from Recife.
Amazon said it expects to kick off operations in the first half of 2020, reducing minimum delivery timing to two working days.