Michelin Advances S.C. Distribution Center to Cap Multi-year Customer Service Initiative
Monday, September 26th 2016
GREENVILLE, SC — Michelin North America, Inc., is advancing its plans to establish a distribution center near Spartanburg, S.C., representing a combined investment of more than $270 million and approximately 350 jobs, the Company announced today.
Construction is expected to begin later this year. The first phase of the center is expected to open in late 2017, with full completion expected in early 2019. The Spartanburg County (S.C.) Council recently provided final approval of a “fee in lieu of taxes” agreement, a final key step enabling the project to move forward.
KEY FACTS:
- Five buildings planned comprising approximately 3.3 million square feet total
- Will support distribution of tires under Michelin, BFGoodrich and Uniroyal brands for passenger vehicles, heavy trucks and agriculture equipment
- Will feature new automation equipment, which should result in significant gains in efficiency, speed and ergonomic conditions
- Developer: Panattoni Development Company, Inc., a major private international commercial developer with operations in the U.S., Canada, and Europe.
- Automation: Swisslog Group, a subsidiary of the German firm KUKA AG, will automate distribution warehouse operations for receiving, tire selection, sequencing and shipping, as well as providing warehouse management software and controls software.
“The Spartanburg distribution facility will cap a multi-year evolution of Michelin’s distribution network in North America. We see it as a transformational milestone designed to better serve our customers while optimizing inventories and improving supply efficiency,” said Pete Selleck, chairman and president of Michelin North America, the Greenville, S.C.-based regional unit of Michelin Group (Compagnie Générale des Etablissements Michelin), the global tire leader with headquarters in Clermont-Ferrand, France.
“We are grateful for the relationships we’ve enjoyed with local government leaders in Spartanburg County for more than 35 years,” Selleck said. “With additional support at the state level, these leaders have helped us advance this important project, which enables our Company to meet growing customer demands for Michelin tires in multiple business segments.”
“Michelin has been one of South Carolina’s most important business partners since its doors opened in Greenville County over four decades ago,” said South Carolina Gov. Nikki Haley. “Both our state and this fantastic company have grown tremendously over the course of this partnership, and we couldn’t be more excited to see that growth and success continue with this $270 million investment that means 350 new jobs for South Carolinians.”
The distribution center’s site is located near the intersection of S.C. Highways 101 and 417, a few miles south of I-85, with convenient access to nearby I-385 and I-26. The location puts it close to critical transportation hubs, such as the South Carolina Inland Port (rail) and the Port of Charleston.
The new distribution center will be located within a short distance of seven Michelin tire plants across South Carolina’s Upstate region, as well as the Company’s Greenville-based headquarters for North America and multiple other Michelin facilities.
“We have worked with Michelin over many months to secure this project in South Carolina,” said South Carolina Secretary of Commerce Bobby Hitt. “An investment of this size with this number of new jobs affirms the attractive business environment South Carolina offers to respected global corporations like Michelin.”
“We are excited to welcome this project to Spartanburg County. This milestone results from the responsiveness of our Spartanburg team working with Michelin,” said David Britt, chairman of the Spartanburg County Council’s Economic Development Committee and Economic Futures Group Board Member. “We have worked closely with Michelin concerning multiple significant investments over 35 years, during which Michelin has established itself as a great corporate neighbor and citizen of our community.”
About Michelin North America
Dedicated to the improvement of sustainable mobility, Michelin designs, manufactures and sells tires for every type of vehicle, including airplanes, automobiles, bicycles, earthmovers, farm equipment, heavy-duty trucks and motorcycles. The company has earned a long-standing reputation for building innovative premium tires. Since 1989, Michelin has received 80 J.D. Power tire customer satisfaction awards—five times the number of all other tire manufacturers combined. In addition to tires, the company also publishes travel guides, hotel and restaurant guides, maps and road atlases. Headquartered in Greenville, S.C., Michelin North America (www.michelinman.com) employs about 22,700 and operates 19 major manufacturing plants.