Kansas City, Mo.—July 5, 2017—Hunt Midwest SubTropolis is emerging as a leading logistics location for the Animal Health Corridor, as it provides climate-controlled distribution centers with its natural environment. Over the past 12 months, the world’s largest underground business complex has announced three animal health expansions due to lower operating costs in their commissioned facilities.
In April, Virbac Corporation, the world’s 8th largest independent veterinary pharmaceutical company, began consolidating its North American product warehousing and distribution operations in SubTropolis. Based in Carros, France, Virbac joins existing animal health tenants Ceva Animal Health and IodiTech Inc., bringing the industry’s footprint in SubTropolis to a quarter million square feet.
“By bringing processes and people together at this Kansas City facility, we are boosting collaboration and efficiency within our manufacturing operations,” said Virbac President and CEO Paul R. Hays. “A SubTropolis location will help Virbac better align itself within the animal health corridor.”
“SubTropolis is the total package for animal health companies and their unique requirements for product safety and climate control, providing significant operational cost efficiencies,” said Hunt Midwest President and CEO Ora Reynolds.
SubTropolis, an Energy Star rated facility, is a compelling value proposition for animal health and pharmaceutical companies that must maintain strict temperature and humidity levels to meet industry standards for their products, according to Hunt Midwest Vice President Mike Bell.
“The underground’s protective layer of limestone essentially offers ‘natural’ cooling that saves companies between 70 and 80 percent on utilities and equipment compared to a building on the surface,” Bell said. “There’s an ‘Aha Moment’ when companies fully realize how a SubTropolis location can substantially improve their bottom line.”
Ceva Animal Health chose SubTropolis for a new North American warehouse and distribution center in 2015 and expanded in 2016 to accommodate rapid growth and demand for its products. Ceva CEO Craig Wallace said consistent conditions and the ability to easily expand were two key reasons the company chose SubTropolis.
“The underground location is a great solution for Ceva’s current and future warehousing needs,” Wallace said. “As we add products and expand into new categories, we require scalable space and partners like Hunt Midwest who can accommodate our growth and evolve with us.”
Kansas City-based IodiTech Inc. opened a distribution operation in SubTropolis in 2016. The company manufactures and ships a variety of iodine derivatives – including animal feed minerals – throughout North America and the world.
“The ability to ship to up to 85 percent of the U.S. within two days was of critical importance,” IodiTech President Curtis Thomas said. “Our location in SubTropolis is the perfect complement to our nearby manufacturing facility.”
The growing collection of animal health assets within SubTropolis is creating an “industry cluster within a cluster” for Kansas City’s Animal Health Corridor, which comprises more than half of the sales generated by the global animal health industry.
“Hunt Midwest SubTropolis is a valued strategic partner as we work on behalf of the Kansas City Area Development Council to attract global animal health companies to the Greater Kansas City region,” said Kimberly Young, president of the KC Animal Health Corridor.
As the world’s largest underground business complex, SubTropolis sets the standard for subsurface business developments. SubTropolis was created through the mining of a 270-million-year-old limestone deposit. In the mining process, limestone is removed by the room and pillar method, leaving 25-foot square pillars that are on 65-foot centers and 40 feet apart. SubTropolis is home to more than 50 local, regional, national and international companies that employ in excess of 1,600 people.
In 2012, SubTropolis earned a perfect ENERGY STAR energy performance rating of 100 in the category of unrefrigerated warehouse from the EPA. Of the six warehouse facilities in Kansas and Missouri that have earned the ENERGY STAR, SubTropolis is the only one to receive a perfect rating.
About Hunt Midwest
Hunt Midwest is a full-service real estate development company with a focus on industrial, commercial, retail, mission critical, multifamily, senior living and residential real estate. Its portfolio is anchored by SubTropolis, the world’s largest underground business complex. Hunt Midwest is a Kansas City-based, privately held company owned by the Lamar Hunt family. The Hunt family business is a diverse portfolio of entities involved in real estate, sports/media, energy/resources, private equity and investments. Marquee entities include the Kansas City Chiefs, Hunt Midwest, Hunt Southwest, FC Dallas Soccer Club, Toyota Stadium, Chicago Bulls and United Center.
Founded in 1968 by a French veterinarian, Virbac is an independent laboratory that has always been dedicated to animal health. Currently ranked 8th worldwide, the company is present in more than 100 countries, offering a comprehensive and practical range of products and services covering the majority of species and pathologies. Virbac innovation, based on both technological advances and listening to the customers, relies on reactive production facilities which met the highest international quality standards. For nearly fifty years, these specific features have allowed the company to build a personalized relationship with veterinarians and farmers in every country.
About Ceva Animal Heath, LLC
Ceva Animal Health offers a growing line of products to meet the health needs of companion animals, poultry, and swine. The sixth largest animal health company in the world, Ceva’s North American headquarters are located in Lenexa, Kansas. Learn more at www.ceva.us.
About IodiTech Inc.
Conveniently located in virtually the center of the continent, IodiTech Inc. offers an ideal setting for manufacturing and shipping iodine derivatives in North America, as well as throughout the world. IodiTech is diversified in the markets it serves, and its products are intended for use in industries ranging from nylon production to pharmaceutical manufacturing, from feed additives and metal finishing to bath salts. For more information, visit IodiTech.com.
About the KC Animal Health Corridor
Companies with a business location in the KC Animal Health Corridor account for more than half of the sales generated by the global animal health industry. The Corridor, anchored by Manhattan, Kansas, and Columbia, Missouri, is home to more than 300 animal health companies, representing the largest concentration in the world. For more information, visit KCanimalhealth.com.