CNH Parts & Service, the product support division of agricultural and construction equipment maker CNH Global N.V. (NYSE: CNH), today announced plans to invest more than $13 million to equip and lease a new facility at 210 South Enterprise Drive in Lebanon, Ind., in the Lebanon Business Park. Once fully operational and staffed, the new facility is expected to support 100 new area jobs.
Known as the Special Processing Center, the new facility will be the company’s third location in the Lebanon Business Park. The CNH North American Master Depot and its Centralized Receiving and Packaging Center currently employ nearly 500 full-time and an additional 200 contract workers in the area, and serve 11 regional parts distribution facilitiesthat supply daily parts to New Holland, Case IH and Case Construction dealerships throughout North America.
“This new Special Processing Center will significantly enhance and expand the overall capabilities of our North American parts operations,” according to Scott Harris, Vice President of CNH Parts & Service for North America. “Its mission is to provide new and highly specialized services that will help our dealers grow their parts sales, even in the most highly competitive segments of our business.”
As an incentive for CNH to move forward with its plans, the Indiana Economic Development Corporation has offered CNH up to $650,000 in conditional tax credits and up to $100,000 in training grants based on the company’s job creation plans. In addition, the City of Lebanon is providing tax credits of up to $285,000, for a total incentive package in excess of $1 million. The company will be eligible to receive incentives as the new local jobs are filled and investments implemented.
The company’s central parts distribution hub for North America is strategically located in Lebanon because it is within a one-day drive of more than 75% of the company’s North American supply base. The well-established interstate highway system also provides CNH with excellent access to its regional parts distribution facilities in other U.S. and Canadian markets that are critical to the company.
In addition, the Lebanon facilities are just 30 minutes away from the Indianapolis airport, which is home to one of FedEx’s largest operations – a company that CNH relies on to expedite parts throughout the world. A total of 10 major airlines serve the Indianapolis airport connecting to the domestic U.S. markets and international destinations.
“The Special Processing Center will have several unique capabilities, such as a specialized warehousing center dedicated to supporting our import and export operations, and a new logistics command and control operation for our extensive parts delivery system that will now deliver both depot stocked and vendor ship-direct parts via our Daily Stock Order delivery system,” notes Keith Shadrick, Senior Director of Operations and Logistics for CNH Parts & Service in North America.
“We’ll also assemble and package repair and maintenance kits in our new state-of-the-art kitting center, put protective finishes on parts in our new paint booth, and protect parts during shipment with the new facility’s specialized packaging capabilities.”
“We’re excited,” concludes Harris. “We want our New Holland, Case IH and Case Construction dealers and customers to have the best parts and service support in our industry. The addition of our new Special Processing Center clearly demonstrates our commitment.”