Digi-Key planning distribution centre expansion

by Inside Logistics Online Staff

THIEF RIVER FALLS, MinnesotaDigi-Key Electronics, the Thief River Falls-headquartered global distributor of electronic components, is reviewing several potential options for a one million square foot fulfillment, value-added manufacturing and warehouse centre with an investment value of between $200-$300 million.

While multiple options are under review, Thief River Falls would be its preferred location, contingent on both local approvals and legislative changes required.

According to Dave Doherty, Digi-Key’s president and COO, “Digi-Key’s ongoing growth in both domestic and international sales is driving the need for increased capacity.”

The company’s potential expansion would add 1,000-plus new jobs over the next ten years to its existing base of 3,200 employees in Minnesota.

“Given our large size, every major expansion becomes more complex and requires that we review a variety of possibilities,” Rick Trontvet, Digi-Key’s vice president of administration and human resources said.

“This review process involves a lot of fact finding, including due diligence with local and state officials to help us make these decisions.”

Digi-Key’s current operations generate approximately $1.5 billion in economic output and add over $940 million to the state’s gross state product. This new expansion would contribute an additional $500 million in state economic output.

Digi-Key Electronics is a distributor of both prototype/design and production quantities of electronic components.