Ace Hardware to expand
The Ace Hardware Redistribution Center off Holland Road will expand its facility by more than a third in the coming months.
The facility, which became the first tenant in the CenterPoint Intermodal Center when it opened in 2012, will soon add about 138,000 square feet to its existing 336,000-square-foot facility.
Economic Development Director Kevin Hughes said on Wednesday that the $10.4 million project will create about five to 10 jobs. The Economic Development Authority approved an Economic Development Investment Program grant of $175,000 for the project following a closed meeting Wednesday.
Construction is expected to begin in April, with a target completion date of November, according to a press release from Ace. The expansion will bring about 70 construction jobs, the press release stated.
The redistribution center serves as the Ace Hardware East Coast hub for receiving import merchandise through the port of Virginia, the press release stated. Once the expansion is complete, products received at the facility will be distributed to 10 of Ace Hardware’s 14 Retail Support Centers, which serve stores as far away as Texas, New York and Florida.
“We look forward to breaking ground on the expansion of our Redistribution Center in Suffolk,” Lori Bossmann, executive vice president of supply chain, inventory replenishment, retail support, loss prevention and property administration for Ace Hardware Corporation, stated in the press release. “Ace’s continued year-over-year sales growth has fueled our need for a larger facility in Suffolk. We’re pleased that the city of Suffolk and CenterPoint Properties are able to accommodate our needs as we continuously grow our operations facilities to meet the needs of our business demands.”
Suffolk Mayor Linda T. Johnson said, “They shared our vision that operating in Suffolk as going to provide strategic value, and obviously that has come to fruition by Ace deciding to reinvest and expand once again.”
“We appreciate the confidence, support and vision shown by Ace Hardware’s re-investment in Virginia,” said John Reinhart, chief executive officer and executive director of the Virginia Port Authority. “Ace Hardware was one of the first companies to choose the Port of Virginia as a location to deploy their supply chain diversification strategy, and this announcement speaks to Virginia’s ability to cultivate and grow businesses as well as compete in the global marketplace.”