(AP) — A Kearney manufacturer is beginning work on a $40 million expansion that could result in new jobs.

Baldwin Filters held a ceremonial groundbreaking Wednesday to kick off construction of a 400,000-square-foot expansion.

Construction is set to begin in July on the new distribution center. It will replace a 110,000-square-foot center, which Baldwin has outgrown.

Vice President of Operations Dan Schulte says the company has been renting 250,000 square feet of storage space in Kearney.

The new center will more than double the number of loading docks and include a more sophisticated management system.

Company officials say the expansion will lead to more jobs, but they couldn’t say how many.

Baldwin employs nearly 1,000 people in Kearney and also has plants in Gothenburg and Yankton, S.D.