Medical device maker announces $ 133 million expansion in Memphis
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Major medical device maker plans to move operations to Memphis as part of larger consolidation effort in the United States
The Memphis Business Journal, citing a company filed with county and city economic development officials, reports that Medtronic relocate existing operations in south Memphis to a nearby 1 million square foot complex, where it will establish a factory and distribution center in partnership with French logistics company CEVA.
The Minnesota medical device giant will dedicate 300,000 square feet to lightweight manufacturing and assembly, while CEVA will sublet the remaining 700,000 square feet for a distribution center exclusively for Medtronic products. The $ 130 million project is expected to retain 365 Medtronic employees and create 265 new jobs by the end of 2023.
The Business Journal reports that Medtronic’s current hub in Memphis – home to its backbone business – employs around 1,000 workers.
Medtronic and CEVA are said to be seeking a 15-year, $ 22 million tax incentive program from local authorities. Medtronic expects to spend a total of $ 133 million on the site over a 17-year lease, while CEVA is said to spend $ 126 million.
The filing indicates that Medtronic hopes to reduce its US distribution network from six locations to two, which company officials say would provide “scalable capability” as well as improved customer service.
Image Credit: Medatronic