Snowmobile, ATV and electric vehicle maker Polaris Industries Inc. (NYSE: PII) announced that they will be spending $10 million for capital improvements at their distribution center in Vermillion, SD.
Aided by funding approved by the South Dakota Economic Development Board, Polaris is making significant upgrades to the material-handling systems at the Vermillion Parts, Garments and Accessories (PG&A) Distribution Center.
Gov. Dennis Daugaard said that the decision by Polaris to invest in the Vermillion facility speaks volumes about South Dakota‚Äôs strong business climate. The Governor said that whenever state programs can be used for assisting a company during its expansion, he is pleased to do so.
The company is undertaking the upgrades to meet increased demand and ensure the Vermillion distribution center‚Äôs long-term viability. The investment therefore helps secure the future of the 150 employees at the 385,000-square-foot distribution center who ship more than 60,000 PG&A products to the company‚Äôs customers, distributors and dealers in 130 countries.
This is the second major investment made by Polaris at the Vermillion distribution center in the last few years. In 2008, the company doubled the size of the distribution center, adding 128,000 square feet of space to the existing 256,000 square feet.
At that time, the company said they decided to expand in Vermillion because of the low cost of doing business in South Dakota, support from the local community in Vermillion, and the flexibility of the workforce, adding that the University of South Dakota provides the company with ample temporary and part-time labor.
Announcing the new $10 million investment, Steve Eastman, vice president of Parts, Garments and Accessories, Polaris, said the improvements being made will create efficiencies that notably enhance the Vermillion Distribution Center‚Äôs throughput.
Eastman added that the investment is a sign of their commitment to the facility, community and their strong and vibrant workforce. He also said they were grateful to the State of South Dakota and the City of Vermillion for their support as the company invests in their shared future.
The South Dakota Board of Economic Development has approved funding for the Polaris expansion project under the state‚Äôs Reinvestment Payment Program. This funding will help cover some of the upfront costs of the capital improvements being undertaken by Polaris.The company is also getting a workforce development grant for employee training.
The Vermillion Chamber of Commerce and Development Company (VCCDC) and the City of Vermillion have furthermore teamed up to offer the company additional incentives.¬†The VCCDC and the City put together a package of incentives for this project in conjunction with the South Dakota Governor‚Äôs Office of Economic Development (GOED) programs.