SRC subsidiary to invest $700K in expansion

Last edited 2:54 p.m., May 25, 2016

An SRC Holdings Corp. subsidiary plans to invest $700,000 in an expansion that would create 50 jobs.

SRC Logistics Inc. is expanding its footprint by 140,000 square feet at the holding company’s 2065 E. Pythian St. plant, where it currently occupies 280,000 square feet, said Danny Perches, business assistance coordinator for the Springfield Area Chamber of Commerce. He said via email the $700,000 would be spent on general infrastructure improvements, as well as warehouse and office equipment.

The 140,000 square feet was recently vacated by SRC subsidiary Global Recovery Corp. when it relocated to the former Regal Beloit building, now known as the SRC Technology Center, according to a news release. SRC bought the Regal Beloit building in December for undisclosed terms.

The expansion comes in response to the 78-employee SRC Logistics’ recent winning bid of a major contract with an undisclosed client.

“SRC won this contract while competing against larger international companies because of our industry leading core management system, (reverse logistics management system), and the passion, drive and experience of our employee-owners," said Vaughn Henson, SRC Logistics general manager, in the release. "Springfield’s location and infrastructure also make it a natural logistical consolidation point for the continental United States.”

SRC Logistics is using Enhanced Enterprise Zone tax incentives, which allow companies to receive property tax abatement on 50 percent of the new investment for 10 years, according to SpringfieldMo.gov. It’s also receiving incentives through the Missouri Works program, which is designed to aid job-creating projects, according to DED.Mo.gov.

SRC Logistics currently provides core management and supply chain services to a dozen major original equipment remanufacturers, including JARP Industries Inc. It’s part of Springfield’s robust remanufacturing industry, which employs more than 2,500 with $100 million in payroll, according to the release.