SPARTANBURG, S.C.—Michelin North America Inc. is planning to open a distribution center near Spartanburg, a project that will comprise five separate structures and represents an investment of more than $270 million.
Construction is expected to begin later this year, Michelin said, with the first phase of expected to open by late 2017 and full completion expected in early 2019.
The complex, which will be located within a short distance of seven Michelin tire plants across South Carolina's Upstate region, will create about 350 jobs at full capacity.
"The Spartanburg distribution facility will cap a multi-year evolution of Michelin's distribution network in North America,” said Pete Selleck, chairman and president of Michelin North America. “We see it as a transformational milestone designed to better serve our customers while optimizing inventories and improving supply efficiency.”
The center will be located about 17 miles southwest of Spartanburg, near the intersection of South Carolina Highways 101 and 417, a few miles south of I-85, with convenient access to I-385 and I-26, Michelin said. The location puts it close to critical transportation hubs, such as the South Carolina Inland Port (rail) and the Port of Charleston.
The center, which will comprise roughly 3.3 million square feet of covered warehousing, will support distribution of Michelin-, BFGoodrich- and Uniroyal-brand passenger, heavy truck and agriculture tires and will be automated to achieve “significant gains” in efficiency, speed and ergonomic conditions.
Michelin opted to disclose the project at this time because the Spartanburg County (S.C.) Council recently approved a “fee in lieu of taxes” agreement, a final key step enabling the project to move forward. The value of this arrangement was not disclosed.