Medtronic and Performance Food Group Growing in Memphis
Three-hundred new jobs are potentially headed to Memphis after two PILOT approvals at today's EDGE Board Meeting.
Medtronic Logistics LLC and CEVA Logistics U.S., Inc. were approved for a 15-year Jobs PILOT to expand their local operations to a new 1 million square foot, $133 million light manufacturing and distribution center at 5300 Airways in Memphis.
Medtronic plans to partner with CEVA Logistics to consolidate and expand its facilities. The Mid-South facility would replace Medtronic’s existing 376,000 square foot Memphis facility on Swinnea Road and add a substantial amount of capacity.
Medtronic also plans to use a portion of the building for manufacturing and assembly operations. If Memphis is chosen, baseline staffing levels from Swinnea would be maintained and significantly expanded. The expansion would retain 365 existing Memphis employees and create 265 net new jobs with an average wage of more than $48,000.
The Dublin, Ireland based medical device manufacturer has a long history in the Memphis community. It acquired Memphis-based Sofamor Danek in 1999 when it expanded into spinal and biologic treatments. Today, Medtronic has revenues of $30 billion and employs more than 90,000 people around the world.
CEVA Logistics U.S., Inc. is a privately held Delaware company. Its parent company, CEVA Logistics AG, is a fully integrated supply chain management company headquartered in Marseille, France. It has 78,000 employees in 160 different countries and more than $7 billion in revenue.
Today's project includes capital investment of $133,350,000. This covers $42 million for building shell construction and site improvements, $20 million for tenant specific improvements, and $71,000,000 for new machinery, computerized technology, equipment, and other personal property.
Another business may also expand its Memphis home. Performance Food Group (PFG) was approved for a seven-year Jobs PILOT to encourage the company and its landlord to invest $29.2 million for the construction of a new 150,000 square foot build-to-suit distribution facility on Global Drive in Memphis. The company will retain 60 existing Memphis employees and create 36 net new jobs with an average wage of more than $45,000.
Performance Food Group markets and distributes more than 250,000 food and food-related products across the United States through its Foodservice and Vistar divisions.
The company employs more than 25,000 people and has annual revenues of more than $30 billion.
The company’s $9 billion Vistar segment is growing. This segment provides products to hotels, office coffee distributors, theaters, convenience stores, vending companies, restaurants, and retailers. It now has more than 100,000 customers.
To continue this growth, PFG needs a new facility in the Central United States. They have considered multiple properties in both Tennessee and Mississippi for the operation. The new facility will serve customers in multiple states throughout the Midsouth region.