The development will be built on the site of a former Heineken brewery and will be carried out by the Retail and Interiors Division of Vinci.
The distribution centre will include a state of the art vehicle maintenance unit, a vehicle wash and refuelling facility and a gate house.
Chris Pape, Managing Director Building Division – Midlands, South West, Wales and Retail said: “We are absolutely delighted to continue our excellent relationship with Tesco Stores Ltd on this project.
“It is particularly pleasing to be working on a project that, once completed, will provide in excess of 1,000 employment opportunities to the local area.”