Warehouse logistics and automation solutions provider Knapp AG has opened a $7 million facility expansion in Georgia that will allow it to conduct "major projects" in the grocery, retail, healthcare, and e-commerce sectors, the company said Tuesday.
Austria-based Knapp operates over 43 locations and has 4,500 employees worldwide, including its U.S. headquarters in Atlanta.
One recent example of the company's growth in the grocery sector was its 2019 partnership with Massachusetts-based e-grocery solutions provider Takeoff Technologies, featuring a $150 million order for 50 micro-fulfillment grocery sites across North America.
Knapp this week announced the grand opening of its "Phase 1" facility expansion in Kennesaw, Ga., calling it the "first step" in expanding U.S. operations to meet the rapidly growing demand in North America.
Knapp's accelerating investment in its U.S.-based facilities and workforce is also driven by the U.S. labor shortage, coupled with the market opportunity driven by emerging technology, such as artificial intelligence (AI), cloud-based technology, and internet of things technology (IoT), the company said.
Beginning with office space for up to 250 employees, the new building has added space for another 400 employees and a 15,000 square foot automated parts warehouse—including Knapp's OSR Shuttle Evo—as well as expanded parts and customer service capabilities.
"Market demand for automated warehousing, distribution, and order fulfillment systems has risen sharply in recent years," Knapp CEO Josef Mentzer said in a release. "The corresponding demand for software solutions to drive these systems and help companies transition to the digital economy is also accelerating rapidly, and this has driven a three-year 404% growth in our business that is fueling our need for expansion."
In additional growth, the company is planning to create a North American Center of Excellence, which it says will expand its global footprint with the addition of expertise and capabilities from mechanical and electrical engineering, to software development, program and project management.
Gartner, Inc.