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Direct seller consolidating distribution center, warehouse in Springville Grace Leong Neways International plans to consolidate its distribution, production assembly and warehouse operations in Salem and Spanish Fork into a proposed $22.5 million showroom and warehouse in Springville, company officials announced Friday.
Construction of the final phase of the 380,000-square-foot building at 2089 Neways Drive in Springville is expected to be done by September. It will include a 50,000-square-foot showroom, 25,000 square feet of office space and a 305,000-square-foot warehouse. When completed, a total of up to 50 workers will be moved from a 286,000-square-foot distribution center and production assembly in Salem as well as from a 280,000-square-foot warehouse in Spanish Fork to the new building. While the company's research and development and manufacturing divisions will remain in Salem, its warehouse lease in Spanish Fork will be terminated. "This is the first retail-style showroom in the United States and is patterned after the successful showroom created for Neways distributors in Japan," said Jim Gibson, director of employee and community relations. He said sales doubled to between $24 million and $30 million in Japan -- which accounts for up to 70 percent of the company's total revenues -- after the showroom there was built in 2000. "Right now, our products, including lotions, shampoos, herbal vitamins and mineral drinks, are spread out between Spanish Fork and Salem. With the new showroom, when distributors come in for training, they can see all the products at once," he said. Construction of the building's $18 million outer shell began in 2004, but was stalled until after Neways was sold in 2006 to Golden Gate Capital, a San Francisco private equity firm. The building's interior is now being finished for about $4.5 million. "This massive building will allow us to consolidate several operations into one location. We'll use this main warehouse to do all our bulk shipping to Neways locations worldwide, as well as individual product orders to our distributors. We'll also use it to assemble product kits and other promotional items," said Brian Slobodow, Neways's chief operating officer. The warehouse features laser-leveled concrete floors that will allow high-speed wire-guided trucks to move efficiently among the storage racks, and more than 100 containers will be shipped worldwide each month. Neways has 2,000 workers companywide including 450 in Springville, Salem and Spanish Fork. |
