Global firm investing $37.7 million in Pierce County parts distribution hub
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- Volvo Group will invest $37.7M to open a 115,000 sq ft RDC in the Tacoma area by 2027.
- Site will serve about 240 dealers and cut stock-order delivery by 1–2 days, company says.
- Site aims to fulfill 500,000+ order lines annually and centralize regional parts.
A new regional distribution hub for truck and construction equipment parts is coming to a newly developed warehouse site in Fife.
The Volvo Group recently announced it would invest $37.7 million for a new “115,000-square-foot, state-of-the-art Regional Distribution Center (RDC) ... to better support its Volvo Trucks, Mack Trucks, Volvo Penta and Volvo Construction Equipment dealers in North America.”
While the company’s news release referred to the new facility as in Tacoma, the site is actually in Fife, at the Valley Avenue Industrial Center, 7323 Valley Ave. E.
The triangular-shaped property totals 6.52 acres and was purchased at the end of January 2023 for $5 million by an LLC affiliated with Xebec, a Dallas-based developer of industrial and warehouse sites.
Andrea Millhorn, development manager for the project with Xebec Realty Partners, confirmed the property’s new tenant with The News Tribune via email Jan. 2.
“Volvo Group has leased the site at 7323 Valley Ave. E in Fife,” Millhorn wrote.
“We’re excited to welcome Volvo Group to the Valley Avenue building in Fife,” she added in a follow-up email. “Completed at the end of 2024, this Class A infill, last-mile facility was designed with Fife’s strategic position in the Seattle–Tacoma industrial corridor in mind — offering immediate access to I-5 and efficient connectivity to the Port of Tacoma and key regional distribution routes.”
Millhorn added that the lease “represents a meaningful partnership, and we’re proud to support Volvo Group’s growth in the region.”
In October 2023, The News Tribune reported that Xebec had launched its first project in the state in Pierce County at the Fife location.
The Volvo Group facility is anticipated to open in early 2027 and will employ about 20 people, according to the company’s release. The company stated the site is “key to optimizing parts delivery and expanding coverage to dealers in the Northwest United States and Western Canada.”
According to the company, the facility “will become the primary RDC for approximately 240 dealers, reducing delivery times on stock orders by 1-2 days on average.”
The facility is expected to fulfill more than 500,000 order lines each year, aiming to reduce carbon dioxide emissions “by centralizing order distribution closer to recipient dealers,” the company stated.
“This facility represents a significant expansion to the Volvo Group’s parts distribution capabilities, allowing us to reduce transportation lead times and improve reliability, especially for dealers in the more remote areas of Western Canada,” said Peter Andell, vice president of service market logistics for Volvo Group North America in a statement.
The Volvo Group operates separately from Volvo Cars, which has a dealership in Fife.
The company is based in Gothenburg, Sweden and focuses on trucks, buses, construction equipment, power solutions for marine and industrial applications, financing and more.
The News Tribune archives contributed to this report.
