After two and a half years and an investment of $55 million, Acco Brands has inaugurated its expanded, state-of-the-art manufacturing and distribution facility in Booneville, Mississippi, creating in the process its largest distribution centre in the US.
At over one million sq ft and with more inventory capacity than the company’s two other distribution centres put together, Booneville represents one of the key bottom line growth drivers for Acco as it continues to make major changes to its distribution and supply chain infrastructure in an effort to operate more efficiently.
"Our Booneville, Mississippi site is a strategically important distribution and manufacturing facility… [and]… is our key distribution centre in the south-east United States," declared Denny Chandler, president/CEO of Acco’s office products group. "It will reduce our shipping costs and offer greater proximity to our customers, allowing us to provide even better customer service."
While around 300 new jobs have been created at Booneville, the expansion has led to the closure of a number of other manufacturing and distribution locations.
Acco is entering the last leg of its three-year integration plan following the acquisition of GBC. So far, a total of 27 facilities have been closed, with nine further closures planned before the end of 2008. By December, the company will have shed around 2,500 jobs.
Despite recent improvements in operating income and earnings per share, investors remain to be convinced by Acco’s restructuring and its share price has slumped by almost 50 percent over the last 12 months.