Krone North America announced plans March 24 to relocate its headquarters to Shelbyville, Indiana, from Memphis, Tennessee. The company will also construct a new distribution center, showroom and training facility there.
“Today is a great day for the Shelbyville community and for the state of Indiana,” said Gov. Mike Pence. “Look at the Hoosier economy and you will understand why leading companies like Krone are choosing Indiana for growth and job creation. We are a top ten provider of agricultural products in the country, we have the highest concentration of manufacturing jobs in the nation, and we’re making significant investments in local and state infrastructure to support Indiana’s reputation as the Crossroads of America.”
Krone, which is owned by Germany-based Bernard Krone Holding GmbH & Co. KG, will invest $12.5 million to construct a 200,000-square-foot facility on 40 acres of undeveloped land at the intersection of Highway 44 and I-74. With a majority of space dedicated to distribution and showrooms, the facility will serve as the company’s primary distribution hub and training center in North America. The new facility will also house approximately 20,000 square feet of office space to accommodate Krone’s corporate headquarters team, which is expected to transition to Indiana in 2017. The project is expected to create up to 101 new jobs by 2021.
“Krone is excited to become part of the Shelbyville community,” said Tommy Jones, president and chief executive officer of Krone North America. “In our search we were very impressed with the commitment and teamwork of the community and the state in helping us make this decision. The culture of Krone aligns very well with that of Shelbyville. We believe this transition is important to our growth strategy for North America.”
With construction expected to begin next spring, Krone anticipates beginning to hire in 2017 for multiple types of positions, including warehouse and office staff as well as management once it is determined how many current employees will relocate from Memphis to Indiana. New positions will offer average salaries nearly double the state’s average wage.
"This is a proud day for Shelby County and Shelbyville and a true testament to the value of teamwork," said Shelbyville Mayor Tom DeBaun. "The units of local government along with the Shelby County Development Corporation worked tirelessly to secure this opportunity and had input from a number of other agencies and organizations within the community. Additionally, the partnerships with the Indiana Economic Development Corporation and the state of Indiana were invaluable in making this a reality. We welcome Krone to the community with open arms and are excited to be partnered with a leader in the agricultural industry worldwide."
Krone was founded in Spelle, Germany, in 1906 and established Krone North America in Memphis, Tennessee, in 1973. The company employs more than 4,500 associates globally, including 160 in the United States. Krone’s hay and forage products are sold through a network of 400 dealers across the United States, Canada, Mexico and Puerto Rico. Still owned and operated by the Krone family, the company’s product line includes high-capacity mower conditioners, disc mowers, rotary tedders and rakes, round balers, large square balers and a full range of forage harvesters.
The Indiana Economic Development Corporation (IEDC) offered Krone North America up to $1,800,000 in conditional tax credits based on the company’s job creation plans. These tax credits are performance-based, meaning until Hoosiers are hired, the company is not eligible to claim incentives. The IEDC will also provide the city with up to $500,000 in infrastructure assistance from the state’s Industrial Development Grant Fund. The city of Shelbyville will consider additional incentives at the request of the Shelby County Development Corporation.
Source: Indiana Economic Development Corporation