Grocery retailer Wegmans Food Markets plans to build a $175 million distribution operation in central Virginia that will create 700 new jobs.

Gov. Ralph Northam recently announced that the grocery chain picked Virginia over North Carolina to expand its East Coast distribution network. The governor said he met with company officials in Rochester, New York during a recent trade trip.

The company plans to build its operation in Hanover County, which is north of Richmond.

Northam approved a $2.35 million state grant for the project.