Smittys Supply Inc. is investing $10 million on a Louisiana expansion that includes new warehouse and corporate office buildings.
The lubricants blender, packager and distributor held a groundbreaking ceremony Friday at the site in Arcola, La., north of Roseland, where Smittys is headquartered.
Ed Smith, owner, president and CEO of Smittys, said the expansion is on 23 acres of land acquired about a year ago from Ballard Petroleum and Blanchard Mechanical. The warehouse will be in operation by the end of the first quarter of 2013, and the corporate office building will be ready by about the third quarter of 2013, Smith told Lube Report.
According to Smith, the project will result in about 100 jobs for the construction of the expansion, and then about 50 permanent new jobs for Smittys, which currently has 400 employees.
The warehouse is 165,000 square feet, and were going to use some new technology in pallet racking and forklifts that allow us to basically double the capacity, he said. The new building will also be taller to have more space, he noted.
Smith said one main reason for expanding near its current Roseland, La., location was that the existing plants vertical integration could not be easily duplicated elsewhere.
We have the capability to manufacture 180 million plastic bottles a year. We have the blow molding equipment here, and we have the grease plant here, he said. You can go set up a warehouse anywhere, but you still have to get product to it. So our synergies, our cost of goods, is better leaving it here.
Smittys manufactures a broad range of lubricants at its Roseland location, including motor oils, gear oils, hydraulic oils, greases, transmission fluids, power steering fluids, cleaners and degreasers, among other products.
We do a lot of different brands for a lot of people, Smith said. As we grow in our private label offerings with other peoples brands, were required to have those on hand for immediate shipment. Were already pretty integrated with our products line – we do glycols, brake fluids, methanol, windshield washer fluids and diesel exhaust fluids. We package and blend, and do all that already, so were not just lubes now.
Smith indicated the new 25,000 square foot corporate office will consolidate about 75 people from five different offices into one central location.
The company was founded by Edgar Ray Smith Jr. in 1969 with his wife, George Ann, joining him three years later. In 2000 they sold the company to their four sons. Ed Smith is now the sole owner.