Daedong Opens Integrated Logistics Warehouse on the US West Coast, Expanding Business Base Across North America
Daedong Opens Integrated Logistics Warehouse on the US West Coast, Expanding Business Base Across North America
- Expecting more flexible and efficient response to balanced growth and logistics flow across the North American market
- Tacoma warehouse with a total area of 8,900 pyeong (approx. 294,000 sq. ft.), serving as an integrated logistics hub for product assembly, parts storage, and distribution
- Strengthening supply stability and service accessibility in the western region, expanding its North American business base with projected annual logistics cost savings of KRW 7.4 billion
Daedong, a leading company in future agriculture technology (co-CEOs: Kim Jun-sik and Won Yu-hyun), announced on August 4 that it has established a large-scale integrated logistics warehouse in Tacoma, Washington State, on the US West Coast, to accelerate its expansion across the entire North American market.
The new Tacoma warehouse marks a strategic step in expanding Daedong’s supply network from its existing East Coast base to the West, aiming to ensure balanced growth and improved service quality across the North American market. With this addition, Daedong is laying the groundwork for a comprehensive supply chain and localized operations system that spans the entire region. By establishing four major hubs - East (North Carolina), Central (Texas), North (Ontario, Canada), and now West (Tacoma, Washington) - the company has built a robust network that allows it to respond more flexibly and efficiently to regional dealer demand and logistics needs throughout North America.
The Tacoma facility covers approximately 29,000 square meters (approx. 8,900 pyeong) and offers storage capacity for around 3,200 tractors, both indoors and outdoors. The Tacoma facility has been established as an integrated logistics hub, featuring an assembly line capable of producing up to 2,000 units of agricultural machinery annually, along with storage capacity for approximately 4,000 different parts. It is designed to handle the entire process, from assembly to parts storage and distribution.
With this new West Coast warehouse, Daedong expects to ease supply chain bottlenecks while extending coverage into Western Canada, significantly enhancing both market responsiveness and service levels. Its close proximity to the port (just a 40-minute drive) is also expected to shorten shipping lead times. Compared to relying solely on its East Coast warehouse, the new facility is projected to reduce total transport distances by around 14.2% and lower annual logistics costs by approximately USD 5.35 million (KRW 7.4 billion). In addition, Daedong plans to pre-position service parts at the Tacoma warehouse and strengthen its just-in-time delivery system, further improving customer satisfaction.
As of May this year, Daedong has achieved an average cumulative market share of 9.6% in the North American tractor segment under 100 horsepower, with a 6.95% share in the western region. With a network of around 530 dealerships across North America, the company plans to use the launch of its new Tacoma warehouse as a springboard to expand its dealer coverage, previously concentrated in the East, into the West. Daedong aims to grow this network to 1,000 dealerships by 2030. By strengthening supply stability and service accessibility in the western region, Daedong expects to steadily increase its market share. In the mid to long term, the company is committed to building a solid business structure capable of maintaining a stable double-digit share across the entire North American market.
