Subaru growing into new Boone County distribution center

May 20, 2013
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Subaru of America plans to invest $18 million to build and equip a regional distribution center in Lebanon, potentially tripling the scope of its Boone County operations.

The automaker is expected to break ground this month on a 715,000-square-foot facility at Prologis Park Lebanon, a 56-acre undeveloped property east of Interstate 65. It could expand to 900,000 square feet if the company’s sales growth continues.

Subaru now has 80 employees in 300,000 square feet of leased space in Whitestown, said Bryan Brackemyre, executive director of the Boone County Economic Development Corp.

As many as 20 positions may be added at the new parts distribution center when construction is complete next spring.

The Lebanon City Council approved a 10-year property tax abatement for the project in February.

Earlier this month, Subaru of Indiana Automotive announced plans to spend at least $400 million to expand its manufacturing operation in Lafayette, adding 900 workers there over the next three years.
 
Subaru's U.S. sales have doubled in the past five years, to 357,600 in 2012. More than half of all Subarus sold in North America last year were built in Lafayette, according to the company.

The new distribution center will support the Lafayette manufacturing plant as well as Subaru retailers, said Gary Palanjian, Subaru of America’s vice president of parts and service.

“Subaru has been setting sales records for the past five years, and we are structuring our operations to reflect that,” Palanjian said in a news release.

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  • 20 jobs?
    I live across Indianapolis road from the plant it is nearly finished and so huge, I can't believe it's only going to have 20 positions available...I was really hoping for a career there just because of the convenience of being so close to home but it's not sounding too promising. Thank you for the detailed information maybe I'll put in for a position and hope for the best.

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  1. How can any company that has the cash and other assets be allowed to simply foreclose and not pay the debt? Simon, pay the debt and sell the property yourself. Don't just stiff the bank with the loan and require them to find a buyer.

  2. If you only knew....

  3. The proposal is structured in such a way that a private company (who has competitors in the marketplace) has struck a deal to get "financing" through utility ratepayers via IPL. Competitors to BlueIndy are at disadvantage now. The story isn't "how green can we be" but how creative "financing" through captive ratepayers benefits a company whose proposal should sink or float in the competitive marketplace without customer funding. If it was a great idea there would be financing available. IBJ needs to be doing a story on the utility ratemaking piece of this (which is pretty complicated) but instead it suggests that folks are whining about paying for being green.

  4. The facts contained in your post make your position so much more credible than those based on sheer emotion. Thanks for enlightening us.

  5. Please consider a couple of economic realities: First, retail is more consolidated now than it was when malls like this were built. There used to be many department stores. Now, in essence, there is one--Macy's. Right off, you've eliminated the need for multiple anchor stores in malls. And in-line retailers have consolidated or folded or have stopped building new stores because so much of their business is now online. The Limited, for example, Next, malls are closing all over the country, even some of the former gems are now derelict.Times change. And finally, as the income level of any particular area declines, so do the retail offerings. Sad, but true.

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