Kraft to build $8 million warehouse

by Diane Rarick

SBJ Contributing Writer

Kraft Foods broke ground Aug. 31 for a 100,000-square-foot, $8 million warehouse facility.

The new structure will be located at 2035 E. Bennett St. the site of the existing plant and will store dry grocery products produced there. Kraft will also convert an existing 55,000-square-foot warehouse space to a refrigerated products storage area. The last major expansion at the Springfield plant was in 1989-90. The plant was originally built in 1954.

The on-site storage facility will reduce the need to move inventory from the plant to storage leased from Springfield Under-ground Inc., according to Joseph B. Lewis, plant manager. It will also help the company more efficiently ship mixed product loads to its customers.

"With dry grocery products and refrigerated products stored at the same location, we can reduce handling and provide more timely service to our customers," Lewis said. "This is consistent with Kraft's overall distribution strategy nationwide, which encourages direct shipments from manufacturing locations to customers."

As part of the project, Kraft will also increase the trailer parking area adjacent to the warehouse site. No additional employment at the plant will immediately result from the project, Lewis said. "But we will be in the position to attract other business in the future."

"This investment, which will exceed $8 million, demonstrates Kraft's continued commitment to the success of its Springfield operations and to becoming the undisputed leader in service to our customers," said James Atkinson, Kraft's area vice president of operations.

"It also reflects the efforts of our Springfield employees, whose achievements over the past year have shown that our Springfield operations are a strong contributor to the Kraft organization, and this plant is well-positioned to innovate and move forward," he said.

Construction of the 234-by-418-foot building will begin immediately and should be complete by April 2000. A general contractor has not been named yet, but Lewis expects subcontractors to be hired from the Springfield area. The staff of Kraft-Springfield has been planning the construction project since fall 1997, Lewis said at the groundbreaking ceremony. With the completion of the warehouse, Kraft will have 700,000 square feet under roof on its 20-acre site.

Tom Addison from Kraft Regional Engineering will oversee the construction, while Steve Rarick, materials manager, and Alicia Russell, engineering manager, will coordinate plant activities during construction.

Kraft's decision to build the warehouse on its property will affect Springfield Underground.

Kraft is the Underground's longest-running tenant and was the original and only tenant in one of its warehouses, both of which comprise 254,000 square feet, according to Louis Griesemer, president.

However, Kraft Corporate Procurement will continue to lease 410,000 square feet of refrigerated underground storage, which is kept at 36 to 56 degrees. The underground natural mine temperature is 58 degrees. That space is used to store raw cheese and for aging cheese.

"We still love Kraft. And with 410,000 square feet, I still think very highly of them. We're sorry to see them go. I have to respect their business decision. It will save them a lot of transportation costs by having that located next to them at the main plant," he said.

Griesemer said the public warehouse division of Springfield Underground will be available to continue handling any overflow storage needs from the Kraft plant.

He also said Springfield Underground will upgrade some refrigeration and mechanical systems in the buildings that Kraft has occupied and use them as public warehouses until a tenant is found to take them over.

Kraft has been a part of the Springfield business community for 60 years. James Anderson, president of the Springfield Area Chamber of Commerce, attended the ceremony and congratulated the employees of Kraft.

"Not all Kraft plants are seeing expansion. This will give Kraft more opportunity to grow, develop and prosper in the future," he said.

Anderson acknowledged Kraft's position as one of the largest employers and largest manufacturers in Springfield. He was joined at the ceremony by Springfield Mayor Lee Gannaway, City Manager Tom Finnie, and officials from City Utilities and the chamber.

Kraft-Springfield has approximately 1,250 employees and produces Philadelphia cream cheese, Kraft natural cheese, shredded cheeses, Velveeta processed cheeses, Di Giorno sauces, Kraft macaroni and cheese dinners