California-Based E-Retailer Picks Indy For New Distribution Center

Posted by Heidi Schwartz 

Newegg’s California headquarters.

Newegg, Inc., an electronics-focused e-retailer, has announced plans to locate a new warehouse facility in Indianapolis, IN, creating up to 150 new jobs by 2015. The City of Industry, CA-headquartered company will invest $20 million to lease, renovate and equip an order fulfillment facility in Indianapolis. The expansion, which is expected to be complete by late 2014, will allow Newegg to serve customers in the Midwest, Chicago and Great Lakes regions.

“The Hoosier State’s reputation for a robust infrastructure separates us from the rest of the pack,” said Gov. Mike Pence. “When companies like Newegg are comparing locations for new distribution hubs, they quickly discover that Indiana’s compelling story–including talented workers, low-tax policies and fiscal stability–make it a state that works for logistics.”

“Newegg has built an outstanding logistics system with strategically placed warehouse operations across the country that allow us to get our products into the hands of customers as quickly and economically as possible,” said Kunal Thakkar, vice president of operations of Newegg. “Expanding our warehouse operations to the state of Indiana is the right business decision for Newegg. This new Midwestern distribution center is part of our global strategy to improve our efficiency and effectiveness for the benefit of our customers.”

The Indiana Economic Development Corporation offered Newegg, Inc up to $1,000,000 in conditional tax credits and up to $100,000 in training grants based on the company’s job creation plans. The city of Indianapolis approved additional tax abatement at the request of Develop Indy, a business unit of the Indy Chamber.

“We’ve long known that Indianapolis’ central location and transportation accessibility was a huge asset for businesses,” said Indianapolis Mayor Greg Ballard. “As the e-commerce industry continues to grow, central locations like ours are key to fast, efficient delivery of products. Newegg’s decision to locate a order fulfillment and processing center in Decatur township will not only be an asset to our logistics industry, but to the citizens of Indianapolis in need of reliable jobs.”