RE:RE:New Satellite Site in Matheson OntarioLet 's discuss this satellite a bit.
Firstly, it is a fairly short distance from the Dane plant site.
If Nordex wanted to build a satellite to expand business. They would choose the Ottawa area or Quebec, so this is not as much about market share. Now what makes sense to me is that it ups their service level to a much, much higher level.
Secondly, it eliminates the pressures to keep the volume of explosives stored on site down to reasonable levels. With the new Johnex line running hopefully 24 hours per day 7 days per week (I can dream ;) Okay let us say they start small at 5 shifts 120 cases per shift 25 kg per case. That comes to 15,000 kg. They don't want to be exceeding their explosive storage licence.
Thirdly, this move will allow them to stategically use their long haul bulk carriers for transport and use the pumper units in the local area. This saves a tonne of money. The reason why is that the pumper trucks are much more expensive and haul only half as much. The lbulk truck(s) can be hauled up when convenient. The trailer(s) can be left behind and the empty ones can be hauled back. The expensive pumper units will thus experience very low mileage and will last for decades.
Fourthly, service levels rise exponentialy. You want a pumper truck? We'll have one to you in half an hour.
Fifth, if really crappy weather hits or some other nature event such as a fire, ice, flood, or road closure a secondary storage location comes in very handy. This move makes Nordex very dependable in the eyes of their customers.