2/17/2015 1:49:00 AM
HEADLINES
Fastenal To Reshore Some Thailand-Produced Fasteners
Fastenal Co. plans to spend $4.2 million to redevelop an abandoned industrial site in Indianapolis into a factory to manufacture fasteners currently imported from Thailand, the Indianapolis Business Journal reports.
“The company is seeking a property-tax abatement from the city worth an estimated $263,444 to make the plan possible,” according to the Journal.
The plan, which would save Fastenal 100% of its property taxes on the site for three years, has received preliminary approval from the Metropolitan Development Commission. A final-approval hearing is set for Feb. 18.
The commission said Fastenal would pay an estimated $134,484 annually in property taxes after the three-year abatement ends.
Winona, MN-based Fastenal recently purchased a 23.7-acre site at 3939 W. 56th St. that contains three buildings, including a 250,000 sq ft manufacturing and office complex.
“Fastenal said it would like to use the building to manufacture custom orders, replacement parts and fasteners that are now being made in Thailand,” the Journal reports. The company would use 55 employees from its nearby Guion Road distribution center to start operations. As business grew, as many as 97 additional employees would be added by 2020.
Existing employees make an average wage of $16.95 an hour, while new employees are expected to make $14.36 per hour, according to the Journal.
“Last March, Fastenal was approved for tax abatements at its Guion Road facility, where it plans to add 60 workers by the end of next year.”
The plan follows a big year for Fastenal in 2014, when sales growth doubled primarily from volume. Net sales rose 12.2% to $3.7 billion.
Those results included steady gains in the company’s fastener products. Fastenal reported 6.9% growth in fasteners during 2014, including 1.6% growth in the first quarter, 5.5% growth in Q2, 9.9% growth in Q3, and 11.4% growth in the final quarter of the year. The company achieved 1.6% growth in fasteners in 2013 and 7.8% fastener growth in 2012.
Fasteners totaled 39.2% of 2014 sales for Fastenal, down from 40.6% the previous year.
For the last six years of Fastenal results, FIN subscribers can click on the FIN Stock Review.
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