Business

Klein Tools to move distribution center out of Cedar Rapids

Company plans to open a new center in Texas

Downtown Cedar Rapids on Tuesday, May 14, 2014. (Liz Martin/The Gazette)
Downtown Cedar Rapids on Tuesday, May 14, 2014. (Liz Martin/The Gazette)

CEDAR RAPIDS — Klein Tools, a manufacturer based in Illinois, plans to move jobs out of Cedar Rapids to Texas within the next two years.

Klein, which makes hand tools, announced Thursday that it will relocate its distribution center operations out of the city to Mansfield, Texas. The company currently employs 55 full-time workers and 40 temporary ones at the Cedar Rapids facility, a spokeswoman said. Some of those employees will receive offers and relocation packages to move to Texas.

Instead of operating in Cedar Rapids, the company said it will build a new 200,000-square-foot distribution center in Mansfield, which is expected to open in 2020.

In a news release, Klein said the new center will allow it “to save on costs while streamlining its supply chain processes.”

The 175,000-square-foot Cedar Rapids distribution center will stay open until the site in Mansfield opens, Klein said. The company opened the Cedar Rapids facility, 8200 Sixth Street SW, in 1981, a spokeswoman said.

l Comments: (319) 398-8366; matthew.patane@thegazette.com

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