New-Tech Europe | April 2018

Latest News

Construction Set to Begin on Digi-Key’s 1-Million-Square-Foot Product Distribution Center Expansion in Thief River Falls

The ‘Innovation Factory‘ at the Mercedes-Benz Sindelfingen plant: the Site Manager of the Mercedes-Benz Sindelfingen plant Michael Bauer (left) and Ergun Lümali, Chairman of the Mercedes-Benz Sindelfingen Works Council (right) are celebrating the start of production of the compact SUV GLA with the team. “With the GLA, the Mercedes-Benz Sindelfingen plant is producing a compact model for the first time proving its high flexibility. With the project ‘Innovation Factory’ we are shaping the future of production at Mercedes-Benz Cars. At the same time we are supporting our global production network by providing quickly additional capacities. Our employees contribute a major part with their long-term experience and a high level of motivation”, explains Michael Bauer. The production of the compact SUV GLA at the Mercedes- Benz Sindelfingen plant, which is about 20 km away of the company headquarters in Stuttgart, marks the starting point for the pilot project ‘Innovation Factory’. Cutting-edge Digi-Key Electronics, a global electronic components distributor, will begin construction of its new facility in Thief River Falls next month. The four-story product distribution center will provide an additional 2.2 million square feet of usable space to the company’s existing Thief River Falls facilities, and will occupy an overall footprint of 1 million square feet. The initial investment is projected at more than $300 Million. Digi-Key reported 26% growth worldwide in 2017, with sales topping $2.3 Billion, exceeding the $2 Billion mark for the first time in the company’s history. The company’s success, driven by its employees’ dedication to customer service, has allowed Digi- Key to add over 170 employees in 2017, 140 in Thief River Falls. “Our original commitment was to generate 100 new jobs in

Thief River Falls per year over 10 years, above and beyond our 2017 base of 3,200, which was conservative, so we are exceeding our projected employment already,” stated Rick Trontvet, Vice President of Administration. Dave Doherty, President and Chief Operating Officer at Digi- Key Electronics, stated, “As our

worldwide revenue growth continues, Digi-Key will need to add more team members in Thief River Falls to keep pace with our growth that has been more than double of others in our industry.” Digi-Key’s new expansion will contribute an additional $500 million in economic output, and will bring 250-300 construction employees to Thief River Falls to construct and operationalize the new facility over three years.

Mercedes-Benz plant Sindelfingen starts production of the Compact SUV GLA

production technologies which feature the ‘Factory 56’, one of the most modern car productions, are tested previously in the ‘Innovation Factory’: from innovative Industry 4.0 solutions to a work organization with flexible working models, the project covers almost all aspects of a future- oriented production. “We do have a highly qualified team that compensates order peaks of the GLA production. Thus Sindelfingen is proving its leading role as an innovation and competence center for new technologies. We, the works councils, are getting closer to our aim producing more vehicles in Sindelfingen. Our effort is to prepare the plant for future challenges and to ensure the employment. I am pleased, that our hard work paid off to make the location strong for the future”, says Ergun Lümali. The GLA has been rolling off the production line at the Mercedes-Benz Rastatt plant since 2013, and also at the Chinese production site of Beijing Benz Automotive

14 l New-Tech Magazine Europe