Isuzu to Open Parts Distribution Center in Greater Cincinnati

14 April 1999

Isuzu to Open Parts Distribution Center in Greater Cincinnati; Latest Japanese Firm to Locate in the Region

    CINCINNATI--(AutomotiveWire)--April 13, 1999--Isuzu Motors America, Inc., announced today the location of a new $88 million Parts Distribution Center (PDC) in West Chester, Ohio, a community located about 10 miles north of Cincinnati.
    Operations are expected to begin in November. The facility will store, package, and ship numerous products, including service parts, export parts, and engines.
    This is the second major automotive investment in the Greater Cincinnati region in the last month. Toyota recently announced the location of a parts distribution facility in Northern Kentucky, located across the Ohio River from Cincinnati. Like Isuzu, the Toyota investment is about $80 million. They join about 80 companies from Japan now located in the 13-county area known as Greater Cincinnati.
    "The addition of Isuzu to our region's business community is recognition of the strengths and benefits offered here. We are delighted they have chosen our area for this new facility," said Neil Hensley, Director of International Development for The Partnership for Greater Cincinnati.
    The Partnership is a coalition of communities in Ohio, Kentucky and Indiana near Cincinnati that has unified the economic development resources of the region. The Partnership provides information, including assistance regarding economic and tax benefits, to companies interested in locating facilities in the U.S.

Investment and Operational Details
    A private developer, Duke Realty Investments, will build and own the 625,000-square foot facility on a 30-acre site for Isuzu. Promax Automotive, Inc. in Madison Heights, Michigan, a suburb of Detroit, will relocate its corporate offices and operate the PDC for Isuzu. Promax is a wholly owned subsidiary of Itochu Company, Tokyo, one of Japan's leading trading firms. Promax was formed for the purpose of investment in the automotive industry in the U.S., especially in logistics operations.
    Total investment for the operation is over $88 million. It includes $11 million in building; $3.15 million for machinery, equipment, furniture and fixtures; and $74 million in inventory.
    Promax Automotive estimates that the PDC will employ 90 people. Payroll will be approximately $2.25 million.

Why Greater Cincinnati
    Several other locations in Ohio, Indiana, and Illinois were considered. Hensley said he believes Greater Cincinnati was selected because of its proximity to key markets, excellent transportation system, quality workforce and an international airport that provides efficient travel throughout the world, including Asia.
    Harold Thomas, Vice President of Parts and Accessory Sales for Isuzu Motors America, noted those attributes in announcing the plant location. He said, "Our goal is to increase our already impressive turn-around time for the shipment of parts to support our dealers. And to do it with talented people that make this area their home." He added, "In today's competitive, technically demanding market, we need educated and motivated personnel to make our business a continued success."
    "This new facility will make Promax even better at managing parts for the automotive manufacturing and service industries," said Sho Yokokawa, General Manager of Service Parts Operation for Promax. "And, because this will be our new headquarters, I am looking forward to a long and rewarding relationship with West Chester and the Greater Cincinnati area community."

Other U.S.-Based Isuzu Facilities
    Isuzu operates other joint ventures in the U.S. including a joint venture with General Motors in Moraine, Ohio, which will produce diesel engines; and an assembly plant with Fuji Heavy Industries in LaFayette, Indiana, which produces the Isuzu Rodeo and Amigo.