It appears that Fastenal is firmly in expansion mode.
Just 10 days after announcing it will build a new, large office center in downtown Winona, MN, the industrial and construction supplies distributor announced Monday that it plans to build a new distribution center in Madison County, MS that will house 60 employees.
Jackson, MS-based WAPT16, The Clarion-Ledger and the Associated Press each report that Fastenal will spend $11.5 million on a new distribution center off Sowell Road in Gluckstadt, MS, in the Central Mississippi Industrial Center. Gluckstack is an unincorporated town about about 18 miles north of the state capitol of Jackson.
Construction on the 129,000-square-foot DC is to begin this fall, with the facility to open by the fall of 2019. It will be Fastenal's 15th such facility in North America.
The announcement was made during a Madison County Board of Supervisors meeting via a news release from Fastenal CEO Dan Florness; Mississippi Governor Phil Bryant's office and the Mississippi Development Authority.
The Clarion-Ledger quotes Florness stating: "We have been fortunate to find great people, form a great team and achieve years of strong growth. As the business grows, we are constantly looking at ways to supplement the strength of our supply chain and our distribution network. This project allows us to strengthen the distribution network, which in turn supports our branch and Onsite network and ultimately supports our customer."
The MDA is providing a $350,000 grant for site preparation, and the Madison County Economic Development Authority is providing a $150,000 grant for infrastructure. Fastenal will qualify for incentives rebating some worker income taxes to the company, for which it could receive $1.4 million over 10 years.
The reports said the 60 new distribution center jobs created over the next three years will pay an average salary of $58,000.