American retail giant Target is setting up a Canadian distribution centre in Cornwall.

Target has purchased 169 acres of land in the eastern Ontario city's business park.

Construction on the centre has already started, and it's expected the company will hire hundreds of employees to work at the distribution centre.

Bob Peters, Cornwall's economic development officer, says the distribution centre positions Cornwall well as a logistics hub for central Canada.

Wal-Mart and Shoppers Drug Mart already have distribution centres in Cornwall. Loblaws also has plans to open its own distribution centre in the city.

Target announced its takeover of 220 Zellers stores across Canada in January.