An employee-owned HVAC manufacturer and the world’s largest contract logistics specialist have plans to grow the Bluff City. RedDOT Corporation and DHL combined will add dozens of new jobs and millions in capital investment to Memphis’ business landscape.
RedDot is a leading manufacturer of HVAC systems for heavy duty mobile applications and a distributor of HVAC components. The company has been in business for more than 55 years with operations in North America, Europe and Asia, while employing 425 people worldwide. As RedDot continues to expand, its Memphis facility needs more space to meet demand.
A 10-year Fast Track PILOT will encourage RedDot to invest $14,260,000 to purchase, renovate, and equip a new manufacturing facility on Presidents Island. Eighty-four net new jobs will be created, and 41 positions will be retained. The facility that was recently vacated by a company that laid off all of its local employees as it closed, will see an infusion of improvements. RedDot is 100% employee owned.
DHL Supply Chain, a third-party logistics provider, was approved for a jobs PILOT to support the addition of a new location in Memphis to serve a new life sciences and healthcare partner. The international corporation specializes in customized logistics solutions based on globally standardized warehousing, transportation, and integrated service.
DHL was approved for a five-year Jobs PILOT to promote the company’s creation of 75 net new jobs with an average wage of $43,679. The company plans to spend more than $7 million to launch the new life sciences and healthcare distribution facility. DHL Supply Chain currently employs 2,300 people in the City of Memphis with a payroll of $97.5 million. This will be DHL’s fifth project in Memphis since 2019.
The EDGE Board also approved a change requested by the Binghampton Development Corporation. The initial Community Builder PILOT requires that a grocery store anchor Binghampton Gateway Center. The grocery store requirement was removed to make way for Junior Achievement Memphis and its education center.
The Binghampton Development Corporation built a 48,000 square foot shopping center that opened in late 2017. The center was anchored by Save-A-Lot grocery store. In 2019, corporate Save-A-Lot began restructuring, selling stores, reducing debt, and closing locations around the country. One of the locations that closed last year was at the Gateway Center.
Junior Achievement Memphis will use Save-A-Lot’s former location to house an educational space dedicated to teaching children business finance basics. Twelve team members will staff the center while 150 students, volunteers, and teachers regularly visit weekdays from October to May. Junior Achievement will sign a 15-year lease and invest $2.5 million in building improvements.