SYSCO Corporation (NYSE: SYY) plans to invest $34.2 million at the I-275 Business Park in a distribution facility that will employ more than 300 people, Mayor Bill Haslam announced today.
The new company is expected to be operational by the first quarter of SYSCOs fiscal year 2008 and will serve restaurants, hospitals, schools, colleges, retirement homes, hotels and other foodservice operations in eastern Tennessee and portions of Georgia, Kentucky, North Carolina, Virginia and West Virginia, the company stated in a national media release today. Due diligence is currently underway, including geotechnical and environmental studies.
The approximately 300,000-square-foot complex will include refrigerated, frozen and dry warehouse space, as well as administrative offices and a truck maintenance facility.
SYSCOs operation will utilize all 44 acres the City of Knoxville owns in the I-275 Business Park and an adjacent 35 acres currently owned by Norfolk Southern.
SYSCOs plan to build a first-class facility that will provide high-quality jobs is great news for Knoxville, Mayor Haslam said. SYSCO is a global leader in its industry that scores high marks on virtually every national business ranking published. We welcome the company to our community, and look forward to working together as the project progresses.
Foodservice customers in the market area are currently being served by SYSCOs operating company in Nashville, Tennessee, as well as SYSCO broadline operations in Atlanta, Georgia; Charlotte, North Carolina; Harrisonburg, Virginia; and Louisville, Kentucky.
Richard J. Schnieders, SYSCOs chairman, chief executive officer and president, said, The Knoxville fold-out will allow SYSCO to provide more localized service to our customers in that market, as well as in the markets of the existing SYSCO companies in Tennessee and surrounding states. Our growth in that region has been consistently strong, and with this new operation we expect to continue that trend.
Mr. Schnieders added that the Knoxville operation is the 17th fold-out announced by SYSCO. The fold-out concept involves the construction of a new distribution facility in a marketplace that contains an established sales base but is currently being serviced from a distant SYSCO company.
In addition to the City of Knoxville, other organizations providing assistance to SYSCO include the Tennessee Valley Authority, the Knoxville Area Chamber Partnership, the state of Tennessee and Steven W. Wright Co.
We congratulate and wish SYSCO every success as they pursue growth opportunities at this major new Knoxville facility, said John Bradley, TVA Senior Vice President of Economic Development. This is a win-win for the company and community that results from a team effort by our regional, state and local economic development entities.
Tennessee Economic and Community Development Commissioner Matthew Kisber, said, Sysco is a respected company within the food distribution industry and we are pleased that they have made Tennessee a pick for their new regional distribution center. Tennessee enjoys a positive business climate right now, and this project is a reflection of the momentum weve been building and the teamwork attitude that has helped make us successful in attracting projects.
Mike Edwards, president and CEO of the Knoxville Area Chamber Partnership, stated, When we began to market this property, Mayor Haslam and City Council asked us to focus on companies that would provide a great corporate presence at the entrance to Knoxville and great jobs and benefits in our community. SYSCO is the perfect fit. The teamwork among the individuals and organizations that worked to make this project happen has been outstanding.
SYSCO is the global leader in selling, marketing and distributing food products to restaurants, healthcare and educational facilities, lodging establishments and other customers who prepare meals away from home. Its family of products also includes equipment and supplies for the foodservice and hospitality industries. For the fiscal year 2005 that ended July 2, 2005, the company generated $30.3 billion in sales. For more information about SYSCO visit the company's Internet home page at www.sysco.com.
