NewCold will invest $150 million to expand its operations to Indiana, establishing a state-of-the-art cold storage facility in Lebanon. To support its growth, the global temperature-controlled warehousing and distribution company plans to create up to 202 new jobs by the end of 2023.
“It is very pleasing to see our continued growth in North America as we seek to build a long-term strategic relationship with Conagra, built on mutual trust,” said Bram Hage, founder and CEO of NewCold. “Our robust global pipeline includes the delivery of at least six new capital projects, as we continue to develop multiple large-scale automated facilities across Europe, Australia and North America. This momentum confirms a very positive future for customers and an innovation boost for the industry.”
The Netherlands-based company, which has nine facilities across North America, Europe and Australia, will establish a 380,000-square-foot facility at the Lebanon Business Park. NewCold’s Lebanon facility will be its third location in the U.S., with additional operations in Tacoma, WA and Burley, ID.
The new building, which will serve as one of the largest cold storage facilities in the U.S., will be equipped with state-of-the-art automated storage and retrieval systems to transfer and store products for its customers in sub-zero temperature conditions. One of those customers will be Conagra Brands, one of the world’s largest food processors, which will serve as NewCold’s long-term client at its Lebanon facility.
NewCold plans to break ground on the facility this year and be fully operational in 2022. The company, which employs approximately 1,000 associates worldwide, will begin hiring immediately for project developers and will fill positions in warehouse management and operations, business development and administration starting in Q3 2021.
“Collaborating with respected partners like Conagra drives our success, as we share an ambition to transform the industry and reimagine the global food supply chain,” said Jonas Swarttouw, vice president of customer and business development at NewCold North America. “As we continue to expand our North American presence, we look forward to becoming a long-term member of the Lebanon and Indiana business community, supporting local communities in efforts to foster economic growth and create high-quality employment opportunities. The NewCold team at our Chicago Regional HQ will be leading the development, implementation and startup of the operation, in close cooperation with our partners and stakeholders.”
The Indiana Economic Development Corporation (IEDC) offered NewCold up to $2.828 million in conditional tax credits based on its job creation plans. These tax credits are performance-based, meaning the company is eligible to claim incentives once workers are hired. The city of Lebanon is considering a $9.8 million bond issuance at the request of the Boone County Economic Development Corporation.
“NewCold’s facility and jobs creation will greatly increase the quality of life for our residents,” said Lebanon Mayor Matt Gentry. “We are hopeful that this newest addition to our city will continue to highlight the vast opportunity Lebanon and Boone County has to offer.”
The announcement is a result of the state’s participation in the 2019 SelectUSA Investment Summit, a U.S. Department of Commerce program dedicated to facilitating foreign direct investment (FDI) into the U.S. NewCold joins a network of more than 450 European business establishments operating in Indiana. These businesses employ approximately 117,300 workers, which accounts for nearly 60% of Indiana’s total jobs supported by FDI.
“Indiana’s reputation as a destination for growth-minded global companies like NewCold continues to grow,” said Governor Eric J. Holcomb. “We were pleased to share Indiana’s story with NewCold executives at the SelectUSA Investment Summit last year, and we’re excited to welcome them to the Hoosier state today as the company commits to establishing a state-of-the-art cold storage facility in Lebanon, creating hundreds of career opportunities for Hoosiers.”
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