Once the major retrofit program is completed at the 350,000-sf vacant building, the company plans to hire 300 workers at the site for its new distribution facility. The company plans to take occupancy and begin hiring this September at its facility in Bethlehem, a suburb of Albany.

State officials contend New York bested competing sites in Connecticut, New Jersey and Pennsylvania for the Daisytek requirement.

The deal was reported by Governor George Pataki who relates, "We welcome Daisytek to Upstate New York and look forward to seeing this vacant building in the Town of Bethlehem transformed into a major regional distribution center. At a time when many communities throughout the nation are facing tremendous economic challenges, this major investment in the Capital Region's economy is a clear sign that New York is on the right track."

The Galesi Group, based in Rotterdam, NY will purchase the building and enter into a long-term lease agreement with Daisytek.

Daisytek and the Galesi Group will invest a total of $7.2 million in building upgrades and inventory management systems, state officials say. The company will handle orders for customers in the Northeastern United States in partnership with FedEx. These orders are currently filled by an operation in Memphis, Tenn.

Daisytek is eligible to apply for a $500,000 capital grant from the State's Empire State Development Corp., toward machinery and equipment costs. The company is also eligible to apply for a $50,000 grant from Albany County.

Commenting on its deal in Bethlehem, Jim Powell, president and chief executive officer of Daisytek says, "With expanding domestic and international operations, Daisytek's goal is to become the world's leading supplier of office and computer supplies. Our new operation in Bethlehem is an important step in that direction. The Daisytek team is excited about coming to New York with a world-class distribution operation."

Daisytek, headquartered in the Dallas suburb of Allen, TX, is a major distributor of office and computer supplies in the United States. The company ships more than 20,000 different products to customers such as Office Max, Office Depot, Sam's Club, CVS Pharmacy and thousands of independent dealers. The company, which has assets of $1.2 billion, also has operations in Canada, Australia, Mexico and South America.

Instant Insights /

Daisytek to Develop Distribution Center in Albany Suburb

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