Bayer Signs Letter of Intent to Build New Distribution Center in Saxonburg, PA

New 220,000 square-foot Distribution Center to support ongoing growth of business

PITTSBURGH--(BUSINESS WIRE)--Bayer announced its plans to build a new 220,000 sq. ft. Distribution Center to support the ongoing growth of Bayer’s Radiology global business that supplies medical device products world-wide. A 10-year lease with optional extensions is being negotiated.

The facility, which will be operated and staffed by FedEx Supply Chain, is in response to growing product demand and steady growth of the business over the past few years. It allows for flexibility for future growth, including an additional expansion option of up to 80,000 sq. ft.

The Distribution Center will warehouse and distribute Bayer’s contrast injectors and sterile disposables kits used for the power injection of contrast-enhanced imaging procedures manufactured at Bayer’s local manufacturing operations in O’Hara, Saxonburg and Indianola. Its lease at the current distribution center, located in New Galilee, Pennsylvania is set to expire in March of 2022.

Included in the building design will be 28 Loading Docks, 1 drive in dock and 1 compactor, 60 tractor-trailer staging and administrative office spaces. It will be located within a mile of the Saxonburg manufacturing site.

Bayer’s Radiology products support imaging procedures in over 95% of the top 50 hospitals in the U.S. The products we make locally support Radiologists and health care providers to make diagnoses, and guide treatment decisions across health conditions and chronic diseases. Our portfolio includes medical devices, contrast media, Radiology software and equipment service across a broad range of imaging modalities, including CT, MR, PET, Interventional and Angiography.

“We are excited to build upon over 50 years of history serving our global customers from the Pittsburgh region, with the construction of this new Distribution Center,” stated Jeff Owoc, Bayer’s Senior Vice President and Global Head of Medical Device Operations. “The center will not only allow for future growth of our Radiology business but will enable us to continue to invest in the local Pittsburgh community.”

Additionally, the new center will feature updated warehouse and labor management systems as well as enhanced system connectivity aimed at improving transactional speed and accuracy. Coupled with automated conveyance systems, the new center will drive higher efficiencies and accuracy into the supply chain management process.

"FedEx Supply Chain is honored to be the supplier of choice for Bayer’s new distribution facility in Pittsburgh,” said Andy Smith, FedEx Supply Chain SVP and COO. "We look forward to managing and streamlining Bayer's supply chain needs so they can maintain focus on their customers and growing their business.”

Bayer has approximately 1,300 employees in Pittsburgh that support the Radiology business and other global operations.