Clarcor officials on Thursday said the company will spend $40 million to build a warehouse and distribution center in Nebraska for its heavy-duty Baldwin Filters division.
Construction on the 400,000-square-foot facility adjacent to Clarcor's plant in Kearney will begin this spring and should be wrapped up two years later. The project is expected to reduce the company's need for off-site storage — Clarcor leases more than 250,000 square feet of space in Kearney — and free up manufacturing space in the 516,000-square-foot plant.
"Our Baldwin business is a principal driver of Clarcor’s success, and we are excited to expand Baldwin’s capacity to handle anticipated growth over the next decade," said Clarcor Chairman and CEO Chris Conway. "Efficient distribution capabilities and excellent customer service are the lifeblood of Baldwin, and our new facility should ensure that Baldwin retains these competitive advantages for years to come."
Baldwin is part of Clarcor's engine/mobile filtration division, which rang up 2012 sales of $504 million and produced $112 million of the total company's $183 million of operating profits. Clarcor execs in September of 2011 said they were launching a three-year expansion at Baldwin's factory in Yankton, S.D.
Shares of Clarcor (Ticker: CLC) closed Thursday's session at $50.46, up slightly on the day. They have risen 11 percent of the past three months.