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GLENWILLOW, Ohio -- Core-Mark Holding Co. Inc. announced it will open a new distribution center here. The company expects to serve approximately 1,000 new stores and transfer an additional 1,000 existing stores from other Core-Mark divisions by the end of the first quarter of 2015.
"As we expand our customer base in the Midwest region, it is important we have an effective distribution network to service these customers economically and efficiently," said Thomas B. Perkins, Core-Mark's Chief Executive Officer. "We look forward to the benefits of having a division in this area of the country to service many of our existing customers and support our continued market expansion."
Core-Mark expects transportation costs to decrease as it reduces mileage to serve customers in the Midwest. Start-up costs are expected to be $1.5 million, with capital expenditures for the project expected to be approximately $16 million.
South San Francisco, Calif.-based Core-Mark Holding Co. Inc. is one the largest marketers of fresh and broad-line supply solutions to the North American convenience store industry. Founded in 1888, the company serves more than 30,000 customer locations in the United States and Canada.