Wabash National Corporation has announced several initiatives to further optimize the company's manufacturing cost structure. As part of this effort, the company is planning to build a state-of-the-art production facility in Franklin KY, 45 miles north of Nashville TN.
Additionally, Wabash will begin to make improvements to its Lafayette IN facilities to streamline production flow and enhance manufacturing efficiency. These efforts are focused on optimizing existing production capabilities and do not involve the addition of new capacity.
On February 28, 2008, the company received an incentive package from the state of Kentucky to build its production facility. Current plans are to begin construction in late 2008 or early 2009, dependent on market conditions, with production ramp-up to begin after completion of construction.
The 300,000-square-foot facility on 60 acres will have the capability to produce both DuraPlate and FreightPro dry van trailers. Cost of the Kentucky plant will be approximately $25 million and is expected to be financed through a combination of Industrial Revenue Bonds, lease arrangements, and operating cash flow. Full-time staffing levels are expected to remain unchanged at the Lafayette plant, while incremental fixed costs at the Kentucky plant will be minimal as shared services from Lafayette will be used.