MEMPHIS, Tenn.—Del-Nat Tire Corp., bouyed by strong growth over the past two years, broke ground in late September on a 100,000-sq.-ft. expansion of its warehouse in Memphis.
The private brander and tire cooperative also plans to introduce an ultra-high-performance and sport-utility vehicle tire line under the Akuret label in the first and second quarter of next year, said Bob Gardner, Del-Nat president.
The warehouse expansion, which will boost the size of the Memphis distribution center to 500,000 square feet, comes in response to strong business growth the past two years, Mr. Gardner said.
Del-Nat's revenues improved 15 percent in 1999 and are up 18 percent through September of this year, aided in part by increased demand generated by Bridgestone/Firestone Inc.'s recall of 6.5 million P-metric light truck tires, he said.
Prior to initiating the warehouse expansion, Del-Nat had been considering moving to another facility altogether.
At the time, the company owned enough land to expand the warehouse by only 100,000 square feet.
Instead of moving, however, Del-Nat was able to buy six acres adjacent to the warehouse providing room for another 300,000-sq.-ft. addtion, Mr. Gardner said.
Mr. Gardner expects the current expansion to be completed by early next year.