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A New York-based private equity firm believes supply chain headaches and trade tensions have generated demand for a national source of large shipping containers and it hopes to establish a major new manufacturing operation in Memphis to take advantage of it.
Memphis Business Appeal reports that MHR Fund Management LLC has filed an application with the Memphis and Shelby County Economic Development Growth Engine to redevelop a former Nike warehouse into the first advanced container and chassis manufacturing operation of this guy outside of China.
“Amid growing trade tensions with China and long delivery times to China, North American client is seeking a domestic 53ft container and chassis supplier,” MHR officials wrote.
According to the application, MHR would invest $112.5 million to install three highly automated production lines in the factory. One line would be able to produce 30,000 chassis per year, while the two container lines would have the capacity to produce 22,500 shipping containers per year.
The request is for a “15-year payment in lieu of tax incentive,” according to the document. The firm has suggested that operations could begin before the end of the year.
The project could create 400 jobs within two years.
MHR, however, is not the only contender for the warehouse located in the far southeast of the city. Mullen Technologies, a California-based electric vehicle company, proposed last year to establish manufacturing operations in Memphis and a suburb in Mississippi.
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