The Liebherr-Logistics facility in Oberopfingen. (Liebherr Group)
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A top Swiss manufacturer of construction equipment has inked a $176 million deal with Mississippi state officials to build a massive distribution and logistics center to provide spare parts in North and South America.
Bulle, Switzerland-based Liebherr Group will construct the hub in Tupelo, Gov. Tate Reeves announced July 23. Best known as the birthplace of Elvis, Tupelo is located in northeastern Mississippi near the borders of Tennessee and Alabama.
“The company’s decision to expand its North American footprint in our state is indicative of the strength of our business climate and capabilities of our workforce. My administration is committed to fostering economic growth and providing good-paying opportunities for all Mississippians. I thank the Liebherr team for choosing Lee County and am excited to watch the company play an integral role in our continued prosperity,” Reeves said.
Liebherr, founded in 1949, is developing its operations on a 118-acre site at the Hive Business Park along Mississippi Highway 6, less than 6 miles from U.S. Route 45 and about 10 miles from Interstate 22. The company plan to construct a building of more than 1 million square feet, investing $176 million to create at least 180 jobs. The growth potential for the Swiss firm could lead to a total $238.4 million investment with 342 new jobs.
The project is receiving assistance from the Mississippi Development Authority through the Mississippi Flexible Tax Incentive, a universal tax credit to offset a company’s state tax liabilities. To qualify, companies must invest over $2.5 million and create more than 10 jobs. MDA also is assisting the project with construction and equipping the facilities. Other public assistance is being provided by Lee County, the city of Tupelo and Accelerate MS, which provides workforce training.
“Our regional workforce partners and residents played an instrumental role in Liebherr’s choice, highlighting Mississippi as the ideal location for their new, multifaceted operation. We eagerly anticipate collaborating with them and are dedicated to supporting their workforce goals and objectives in Lee County,” noted Courtney Taylor, executive director of Accelerate MS.
The company plans to build a Liebherr-Logistics GmbH warehouse for the American continent that will handle customs and export services along with logistics and service operations, such as warehousing, distribution, pre-assembly, kitting and repackaging.
“Tupelo is the ideal location to service and deliver our spare parts to clients in the U.S. and other countries on the North and South American continent. Furthermore, it will serve to expand our businesses with other product segments of the Liebherr Group at the same campus. Its unique logistical capabilities combined with the central geographical location will make a difference to us and our clients,” said Joerg Stroebele, managing director of Liebherr-Logistics.
Stroebele praised the positive business climate in Mississippi and said its “strong labor market with a highly educated workforce positively contributed to our decision for Mississippi and Tupelo.”
Principal locations of Liebherr companies. (Liebherr Group)
The first phase of the project will focus on creating a logistics and distribution center for after-sales services. Then the company will invest in other work to support its various product segments. With 13 product segments, the Liebherr Group has 150 companies in 50 countries and 53,000 employees worldwide.
Liebherr-Logistics serves as the internal logistics provider for the Liebherr Group, managing spare parts logistics for various Liebherr production companies. With more than 430 employees, the division handles logistics for several product segments, including earthmoving machinery, components, concrete technology, tower cranes and maritime cranes. It supports more than 70 Liebherr sales and service companies worldwide, covering more than 20 product lines.
Last year, the company opened its second distribution warehouse in the Netherlands to be closer to customers in Northern and Western Europe. Since 2015, it has been operating from a distribution warehouse in southern Germany.
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