The new facility expands Menlo’s operating network, as well as its relationship with Dow, and is expected to reduce costs and maximise efficiencies. Menlo chose the site because of its proximity to Dow’s operations in Midland, Michigan, believing there are benefits to being nearby.

Dow products manufactured at the Midland site will now flow through Menlo’s warehouse in Bay City. Menlo believes that this, plus a reengineering of its transportation network, will reduce the distance its trucks cover by 130,000 miles a year.

This saves Menlo money but the company also emphasised the environmental benefits. It claims that the reduction in mileage will cut its diesel fuel use by 20,400 gallons a year. This results in the company reducing its annual output of CO2 emissions by 460,000 pounds.

Dow will also benefit from the new site. "This strategic location in Bay County will provide great value to Dow by reducing costs while maximizing efficiencies", explained Anne Adams, North America supply chain leader for Dow Wolff Cellulosics.

From the new site Menlo will provide inventory management, warehousing and fulfilment services. These include receipt, put-away, storage and shipping of the drums, bags and supersacks of cellulose products manufactured at Dow’s Midland facility.

The site is a former manufacturing facility which has been vacant for many years. Following renovation and upgrade Menlo describes the site as “a modern, energy-efficient, purpose-designed facility which will provide strategic warehousing and distribution services”.