By MICHELE F. MIHALJEVICH
Indiana Correspondent MEMPHIS, Tenn. — About 19 months after scrapping plans to relocate to Shelbyville, Ind., Krone North America has announced it is moving its headquarters and parts distribution operations from Memphis to Olive Branch, Miss. Krone, a manufacturer of hay and forage equipment, will invest $1.5 million to lease about 45 percent – or 265,000 square feet – of a building under construction. The move will allow Krone to consolidate two warehouse operations into one facility, the company said. It will move 45 jobs to Olive Branch. The new state-of-the-art facility will enhance parts and equipment deliveries, pickup, shipping and parts inventory management, the company said. The location has better access for commercial carriers, dealers and customers, Krone noted. “As Krone has continued to grow in North America, we realized the need for a larger, specialty-built facility to better serve our employee, dealer and customer needs,” explained Dietz Lankhorst, president and CEO of Krone North America. “And we knew we wanted to remain in the mid-South region. So, moving just down the road to Olive Branch makes good sense. We look forward to being a good corporate citizen in the north Mississippi area.” Krone plans to begin the move by the end of the year. Attempts by Farm World to reach company officials for further comment were unsuccessful. The president and CEO of the DeSoto County Economic Development Council hopes the move will draw other agricultural-related businesses to the area. “At the end of the day, while we do have a lot of industry in Mississippi and DeSoto County, we still have a strong agricultural base,” Jim Flanagan said. “The importance of Mississippi when it comes to its contributions to agriculture is immeasurable, especially when it comes to row crops. (Krone’s move) adds value to the agricultural industry that’s already established here.” The council began meeting with Krone about a possible move in May 2018, he said. The county will benefit from the caliber of the company, plus its longstanding relationship in the Memphis area, Flanagan added. The Olive Branch location is 10-12 miles from Krone’s current headquarters. “The new space gives them opportunities to expand,” he explained. “The incentives that were offered help them to retain their employee base and retain talent.” The Mississippi Development Authority (MDA) began working with Krone on the move last June, according to MDA spokeswoman Tammy Craft. MDA is providing a grant of $250,000 to Krone for the relocation and installation of equipment, she said. The company will relocate more than $30 million in finished products from Memphis to Olive Branch. In addition, the city of Olive Branch is offering property tax savings with an estimated total value over 10 years of more than $7.3 million (building and equipment, $740,500; inventory, $6.6 million), she said. In March 2016, Krone announced it would spend $12.5 million to build a 200,000 square-foot facility on 40 acres in Indiana. The site would have served as the company’s primary distribution hub and training center in North America. Plans also included showroom and office space; up to 101 new high-paying jobs were expected by 2021. The company canceled the plans in July 2017. Then-company President and CEO Tommy Jones said the decision was strictly a business move and not a problem with the site or the area, according to Brian Asher, executive director of the Shelby County Development Corp. Asher said Jones cited factors such as a fiscal quarter that didn’t meet the company’s hopes and uncertainty over a possible border adjustment tax. Krone didn’t reach out to Shelby County officials as it considered a new move, Asher said. The city and county repurchased the 40-acre site and have had quite of bit of interest in it, he said. The investment Krone is making in Olive Branch is far less than it would have made in Shelbyville, Asher noted. “It doesn’t sound like it was an ‘apples to apples’ situation,” he pointed out, “They’re leasing rather than buying. The facility they’re leasing is about 25 minutes from where they are now. “For them wanting to keep their own workforce, that’s understandable. We’re satisfied with everything we did on our end (in working with Krone in 2016-17).” The Indiana Economic Development Corp. and the Indiana Chamber of Commerce declined comment on Krone’s announcement. |
