ASV Holdings, Inc., a provider of rubber-tracked compact track loaders and wheeled skid steer loaders in the compact construction equipment market, confirmed Monday it will establish a new parts distribution center adjacent to its corporate headquarters and manufacturing plant in Grand Rapids.

News of the plan first emerged during a June meeting of the Grand Rapids City Council. Community Development Director Rob Mattei apprised councilors of the proposed project, which would potentially employ 13 FTE positions at an average wage of $19 per hour plus benefits.

ASV has been approved to qualify for Minnesota State funds and assistance totaling approximately $450,000, with low or no-interest financing. The net cash cost to the company is expected to be approximately 60 percent of the costs of establishing the new facility.

“We were very pleased to receive the support of local and state representatives with whom we worked during the state grant approval process, which created the opportunity to locate our parts distribution to Grand Rapids,” said Jim DiBiagio, chief operating officer of ASV. “After the relocation process, not only do we anticipate improving the speed and quality of parts support for our customers but we expect to be able to do so at a lower operating cost to the company from the synergies of consolidating in one location with unified systems.”

The relocation to Grand Rapids is expected to be completed during the second quarter of 2018. 

“We continue to take steps to manage our growth as a public company, and rebuild the ASV brand as an independent entity. In recent years, our parts distribution was outsourced and we believe that moving back to Grand Rapids will allow us to provide the level of customer service expected of a quality brand,” said Andrew Rooke, chief executive officer. “In addition, we expect to achieve significant cost savings with this project from operational synergies that will contribute to achieving our targets for margin improvement. This is another significant step in the reestablishment of the ASV brand as a quality leader in the compact track loader business.”

The company expects to record expenses of approximately $250,000 in the fourth quarter of 2017 related to the establishment of the new distribution center.