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Uncertain fate for Simcoe Parts site as HCM moves to direct delivery

Posted February 12, 2014

Simcoe Parts Service (SPS) is moving its operations from the south side of Industrial Parkway to the new addition under construction at Honda of Canada Manufacturing (HCM) Plant 2 eliminating a middle step in the automaker's just in time parts delivery chain.

For over 25 years, SPS has served as the inbound warehousing (and some parts assembly) for parts trucked in from Honda's Ontario and U.S. feeder plants, placed them on carts, then delivered again by trucks across the road to HCM. Under changes initiated just prior to the end of 2013, SPS started making deliveries directly to the production line. That will be fully implemented once the expansion is complete at Plant 2 (early 2015), to house the consolidation activity.

Mike Page, HCM's Communications officer, told Free Press Online via email that the direct to source delivery system is in-line with the rest of Honda's North American operations, and " increases efficiency and involved no reductions in staff at HCM or SPS. Affected Honda Associates were provided with new opportunities within HCM."

With the SPS relocating in-house at HCM, it brings into the question the future use of more than 200,000 sq. ft of gross floor space, spread out over five hectares of land just west of Tottenham Road. In 2007-08 SPS added an 188,478 sq ft expansion that was tied to the engine and aluminum plant additions. The aluminum plant was abandoned and demolished less than five years after it opened.

Mr. Page said there have been no decisions about future uses for the SPS site other than it "could become warehouse space or be used for another purpose by SPS or HCM."

"We didn't want to be too specific about the plans for the space following the completion of the additions to Plant 2," he said. "I know SPS will still be working there but I understand some space will be freed up. We just didn't want to launch any speculation that SPS would be moving their entire operation or that the real estate would become available for anyone who might be in the market. This way we make no commitments but we also don't start any rumours that the addition to Plant 2 means that there will be a 'For Sale' sign going up in front of SPS."

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