There has be a lot of press on our recent announcement of expansion in Sioux Falls - some truthful and some not. I'd like to set the record straight on what is happening in Sioux Falls. Yes we did purchase six acres of land from the Sioux Falls Development Foundation to build our new Export Division combined with our Capello Corn Head Implement Division. The Sioux Falls Economic Development Foundation was very helpful gaining our trust and business. The price was right and our new location will be less than one mile from interstate 29 and 90 with great access from the new Marion Exit!
The Worthington Ag Parts - Export Division is currently located just north of Sioux Falls in Renner on property we currently lease. The lease expires on August 31, 2011. The business has grown extensively over the last five years and we need more space than the current facility provides us. In 2010 we exported parts to over 30 countries. It's a emerging business unit for Worthington Ag Parts.
In 2010 Worthington Ag Parts became the exclusive distributor of Capello corn heads which are manufactured in Italy. The product has been a huge success and will continue to grab market share within the United States. It became necessary for us to have a facility to handle hundreds of corn heads annually for distribution to our growing dealer base. You can read more about the Capello corn head and it's state of the art stalk chopping system at www.capellousa.com.
The Worthington, MN retail store is not closing and relocating to Sioux Falls, South Dakota. It will remain at it's current location. The business was founded there in July of 1964 and we have no intentions of relocating it. We remain committed to the local farmers in and around the Worthington area along with all of our domestic customers! In error some radio stations in Minnesota, Iowa and South Dakota has been reporting we are relocating the operations. Careful consideration was given to expand the Worthington, MN facility and include the base operation plus the Export and Capello implement division. The problem was the expansion of highway 60 in front of our store. As a result of the highway expansion MN DOT will be removing all three of our exits and entrances to the highway and replacing it with a frontage road that dead ends at our facility. As of result of this it leaves us with a non-conducive environment that prohibits further expansion of the existing MN location. Thus Worthington, MN was eliminated from consideration.
The corporate head quarters is currently located in Maple Grove, MN. It handles all administrative tasks for our world wide operations, accounting, finance, human resources, purchasing, business development and information systems. We currently lease office space and that lease runs through 2014. It is our intention to relocate our corporate head quarters to the new facility in Sioux Falls, South Dakota once our lease expires. Having said this, we are actively pursing acquisitions of other businesses that will continue our growth and with them could come revised strategic plans involving the corporate headquarters!
The construction of our new facility begins in early 2011 with completion by August. It will consist of 20,000 square feet of warehouse space along with the potential of 8,500 square feet of finished office space.
That's the facts - we are excited about our emerging business units along with our long lasting parts operations in the United States providing quality used, new and re-manufactured parts for tractors, combines, cotton pickers and implements.
Cheers,
Mike Winter
