MN: ASV Holdings Opening Distribution Center in Grand Rapids
4 Jan, 2018
ASV Holdings Inc., a manufacturer of compact track and skid steer loaders for the construction market, is moving its parts distribution operations from Southhaven, Miss., to a new site near its corporate headquarters and manufacturing plant in Grand Rapids.
The move, which will bring 13 jobs to the Itasca County city of about 11,000, will enable the company to more effectively manage aftermarket parts distribution to its dealers and reduce operating costs. Under current arrangements, ASV subcontracts distribution with a third party in Mississippi.
The company will invest nearly $686,000 to open the new distribution center in 53,000 square feet of leased warehouse space in Grand Rapids. The new jobs are expected to pay wages averaging $20.25 an hour including benefits.
The Minnesota Department of Employment and Economic Development (DEED) is supporting the project with a $125,000 loan from the Minnesota Investment Fund. If the company meets hiring and investment commitments, $50,000 of the loan will be forgiven.
In addition, Iron Range Resources and Rehabilitation is contributing a $300,000 loan.
“This investment will allow ASV to streamline operations and improve customer service by moving its parts distribution in-house in Grand Rapids,” said DEED Commissioner Shawntera Hardy. “This is a significant move that will keep the company a leader in the compact construction equipment market.”
ASV Holdings designs and manufactures compact construction equipment, with emphasis on track loaders. The company’s equipment has a unique and patented rubber track undercarriage technology that provides exceptional traction on soft, wet, slippery, rough or hilly terrain.
ASV dates back to 1983, when it began developing a product called the Track Truck, a rubber-tracked vehicle the size of a pickup truck The company’s founders include Edgar Hetteen and Gary Lemke, who have links to the early snowmobile industry. Hetteen founded Polaris Industries and later Arctic Cat. Lemke was owner of the largest Arctic Cat dealerships in North America.
Earlier this year, ASV Holdings became a public company that trades on the NASDAQ market under the market symbol ASV.
The Minnesota Investment Fund awards loans that businesses can use for improving their operations and hiring additional workers. Last year, the program awarded $16.5 million in financial support to 19 businesses. Those loans resulted in more than 1,500 jobs and attracted $500 million in private funding.
The DEED website has more details about the Minnesota Investment Fund.
DEED is the state’s principal economic development agency, promoting business recruitment, expansion and retention, workforce development, international trade and community development. For more details about the agency and its services, visit the DEED website or follow DEED on Twitter.