Bus builder New Flyer to open parts distribution centre in southern Ontario
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WINNIPEG - Bus builder New Flyer Industries Inc. (TSX:NFI.UN) announced Tuesday that it plans to open a parts distribution centre in southern Ontario later this year.
No details were immediately available on the number of people who will be employed at the distribution centre, which the company said would be established in the "Greater Toronto and Hamilton area."
"We have been expanding our aftermarket service model and with a number of customers in this region asking us to provide local support, opening an Ontario PDC is the next logical step in executing our strategy," president and CEO Paul Soubry said in a release.
There are currently more than 9,300 transit buses operated by over 65 transit agencies within a 300-kilometre radius of the two cities, of which nearly a third were manufactured by New Flyer, added Hans Peper, the executive vice-president, customer services.
"Establishing a PDC in the region is expected to improve New Flyer's response time for service parts, enhance parts availability and fill rates, and to enable the company to better support its customers in the areas of supply and inventory services."
The decision to establish the Ontario parts centre follows on the successful launch a customer service and overhaul centre in Arnprior, Ont., last year, the company said.
Some inventory from Winnipeg will be redistributed to the Ontario PDC to be closer to New Flyer's customer base in the region.
It currently has parts centres in Winnipeg, Erlanger, Ky. and Fresno, Calif..
With more than 2,000 employees, the company manufactures heavy-duty transit buses in Canada and the United States, with manufacturing facilities in Winnipeg and St. Cloud and Crookston, Min..
Its units were down 11 cents at $10.34 Tuesday morning on the Toronto Stock Exchange.