Michelin to open €240m US distribution centre

Spartanburg, South Carolina – Michelin North America Inc. is planning to open a distribution centre near Spartanburg, a project that will comprise five separate structures and represents an investment of more than $270 million (€240 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 centre 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 centre, 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 (South Carolina) 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.

"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.”

David Britt, chairman of the Spartanburg County Council's Economic Development Committee and an Economic Futures Group Board Member, called Michelin a “great corporate neighbour and citizen” and said, “This milestone results from the responsiveness of our Spartanburg team working with Michelin.”

South Carolina Secretary of Commerce Bobby Hitt said the state worked with Michelin over many months to secure the project for the Palmetto State.

“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,” he said.

Michelin identified the Panattoni Development Co. Inc., an international commercial developer with operations in the US, Canada, and Europe, as the project coordinator,. Swisslog Group will automate distribution warehouse operations for receiving, tire selection, sequencing and shipping, as well as provide warehouse management software and controls.