Michelin North America Inc. is building a distribution center near Spartanburg, S.C. It will house Michelin, BFGoodrich, and Uniroyal-brand tires for both passenger and commercial vehicles, and will be located near the company’s seven manufacturing sites in the state.
The center represents an investment of more than $270 million. Construction is expected to begin later this year, and the first phase of the center is expected to open in late 2017.
Full construction should be complete in early 2019, the company says. The Spartanburg County Council recently provided final approval of a “fee in lieu of taxes” agreement, something Michelin labeled “a final key step” enabling the project to move forward.
Five buildings are planned and will comprise approximately 3.3 million square feet.
The center will support distribution of tires under Michelin, BFGoodrich and Uniroyal brands for passenger vehicles, heavy trucks and agriculture equipment.
Automated equipment from Swisslog Group, a subsidiary of the German firm KUKA AG, will be installed to improve efficiency, speed, and ergonomic conditions in receiving, tire selection, sequencing and shipping.
“The Spartanburg distribution facility will cap a multi-year evolution of Michelin’s distribution network in North America,” says 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.
“We are grateful for the relationships we’ve enjoyed with local government leaders in Spartanburg County for more than 35 years. 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 operated a truck tire plant in Spartanburg since 1978. Other plants are located in Greenville and Lexington, S.C., and the company’s North American headquarters also are located in Greenville.
“Michelin has been one of South Carolina’s most important business partners since its doors opened in Greenville County over four decades ago,” says 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.
“We have worked with Michelin over many months to secure this project in South Carolina,” says 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.”
David Britt, chairman of the Spartanburg County Council’s Economic Development Committee says, “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.”
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