MEMPHIS, Tenn.Horizon Tire Group has agreed to buy the former Del-Nat Tire Corp. warehouse in Memphis and will use it to improve distribution of its products throughout the central U.S.
Financial terms were not disclosed. Horizon Tire is buying the facility from Del-Nat Realty G.P. The warehouse became available after Del-Nat agreed in late January to sell its tire inventory and certain other assets to TBC Corp.
Horizon said it expects to start using the 500,000-sq.-ft. facility in late May.
Acquiring the Memphis warehouse will allow Horizon to meet the market demand for service, according to Victor Qiu, vice president of sales. This allows Horizon Tire not just to serve our customers' in-time delivery demand, but also to support our regional warehouses.
The Memphis facility will be Horizon's fifth U.S. warehouse. The others are in Norcross, Ga.; Cranbury, N.J.; Houston; and at the firm's headquarters in Irwindale, Calif., with combined warehousing capacity of 430,000 square feet.
Horizon, which has been doing business in the U.S. for more than 10 years, also has offices in Beijing and Qingdao, China.
The company imports and distributes a number of brands, including: Antares; Crosswind; Linglong; Sotera; Supermax; Triangle; and Wind Power, in passenger (including performance and winter), SUV/CUV, light truck, radial truck/bus and trailer tires.
The company describes its primary business model as container direct shipping to any U.S. destination.