Gov. Edwards, Medline Announce Major Distribution Center in Louisiana
COVINGTON — Gov. John Bel Edwards and Medline Industries Inc. announced the company will build an 800,000-square-foot distribution center and plan to create more than 460 new direct jobs in St. Tammany Parish, near Covington, with 170 new jobs created within two years of opening. The $53 million medical supply facility will be built on the north side of Interstate 12 at La. 21, and will replace a smaller Medline distribution center located between Covington and Goodbee.
According to a press release, Medline will retain 36 existing jobs while creating an additional 464 new direct jobs in the parish. The average annual salary of those Medline team members will be $37,400, plus benefits. Louisiana Economic Development estimates the project will result in an additional 611 new indirect jobs, for a total of more than 1,070 new jobs in Southeast Louisiana.
“GNO Inc. is thrilled that Medline has chosen to invest $53 million in St. Tammany Parish to develop an innovative distribution facility,” said president and CEO Michael Hecht of Greater New Orleans Inc. “Medline’s expansion marks one of the most significant investments in recent St. Tammany history, and will create 464 new direct jobs for the people of South Louisiana. We congratulate St. Tammany Parish and Medline for this important economic development partnership.”
“With excellent infrastructure on Interstate 12, and ready access to Interstates 10, 55 and 59, St. Tammany Parish is extraordinarily well-positioned to provide state-of-the-art logistics along the Gulf Coast and into the interior U.S.,” Gov. Edwards said. “We’re delighted that the largest privately held provider of medical supplies recognizes the value proposition that Louisiana delivers in logistics, workforce and business climate. This project will be a game-changer for St. Tammany Parish, with new opportunities for our people and economic diversification for our state.”
Medline’s new distribution facility will feature 800,000 square feet of storage, warehousing, shipping and associated management office space, with the capacity to expand by 200,000 square feet in the future on an approximately 70-acre site. Fully developed, the distribution center could support up to 700 jobs in the future.
Headquartered in Northfield, Illinois, Medline is a fourth-generation, family owned, health care company and the largest privately held manufacturer and distributor of medical supplies in the U.S., ranking No. 32 on the Forbes list of largest private companies. Medline has more than 24,000 employees worldwide, and operates 60 distribution facilities across the globe.
“As a member of the Louisiana community for more than a decade, we are very pleased to continue to grow as an employer and investor in the state,” said Bill Abington, executive vice president of global operations for Medline. “With health care growing so rapidly in the region, the location is ideal for easy access to health care providers while also letting us maintain and grow our current team. We are grateful to the state, Louisiana Economic Development and officials in St. Tammany Parish who have recognized the potential of the project and worked to bring it to fruition.”
Medline provides health care programs and products to providers across the continuum of care – from hospitals and surgical centers to assisted living facilities, nursing homes, hospices and physician offices. The distribution facility will manage packaging and shipment of all medical supplies ordered by the individual health care providers of the Southeast U.S. region, including items such as exam and surgical gloves, face masks, isolation gowns, reusable textiles, incontinence products, electrosurgical products and housekeeping supplies. The company also distributes durable medical equipment, monitors and other medical equipment.
“We are fortunate to have a well-respected, global company expanding its operations in our community,” said CEO Chris Masingill of St. Tammany Corporation, the economic development organization for St. Tammany Parish. “This commitment from Medline and LED reinforces why St. Tammany is the destination of choice where businesses can continue to thrive. This company is a good corporate citizen and has a proven track record of employee retention and reinvesting in our local economy over the past 14 years. This expansion will allow Medline to continue to foster job growth while attracting highly skilled workers for their quality jobs.”
LED began discussing a potential expansion with Medline in April 2019. To secure the project, the State of Louisiana offered a competitive incentive package that includes the comprehensive solutions of LED FastStart® – the nation’s No. 1 state workforce development program. The company will receive a performance-based grant of $2 million, which will defray infrastructure costs supporting the project, and Medline will be eligible for a $500,000 Economic Development Award Program incentive to offset the costs of building new road access to the site. Medline also is expected to utilize the state’s Quality Jobs Program.