Wolverine World Wide receives federal Free Trade Zone designation

GRAND RAPIDS, Mich. — Wolverine World Wide has been established as a subzone of the federal foreign trade zone that comprises Kent, Ottawa and Muskegon counties in West Michigan. The announcement was made by Grand Valley State University's Van Andel Global Trade Center, which is the grantee administrator for the Kent Ottawa Muskegon foreign trade zone, officially known as KOM No. 189.

As the operator of the subzone, Wolverine plans to distribute finished products to its customers in the United States and abroad and achieve significant efficiencies for its recently consolidated North American distribution operations. In January, Wolverine announced that it was transitioning these operations from Canada into the company's existing Michigan facilities located in Rockford, Cedar Springs and Howard City. As part of this consolidation, Wolverine plans to redesign portions of its global distribution network and relocate inventory to the United States.

The anticipated benefits for Wolverine from receiving the new subzone status for its centralized distribution operations include:

• Cost savings from deferred duties associated with the subzone's free-trade status and other process changes in the company's global supply chain
• The hiring of new employees in operational and administrative positions in the subzone, as Wolverine increases product distribution operations in the zone
• The opportunity to achieve greater efficiency in Wolverine's distribution facilities by using existing capacity within these facilities
• Support for existing jobs at Wolverine and its supply chain partners, such as truck, rail, and ocean carriers who will transport merchandise to and from the subzone
• Implementation of an enhanced customer service function
• The “best practice” use of C-TPAT in the Foreign Trade Zone offers improved physical security, access and inventory controls, which complements and supports secure supply chains.

Michael F. McBreen, president of the Global Operations Group at Wolverine World Wide, said: “Wolverine's foreign trade subzone designation will play an important role in supporting the increased operating efficiencies and improved supply chain outlined in our strategic restructuring. We expect our new status will provide a long-term economic benefit to Wolverine and West Michigan by improving our access to international markets. It will also help our utilization of existing assets, support existing jobs and, over time, create new jobs in the region.”

Sonja Johnson, executive director of the Van Andel Global Trade Center, said: “In today's economic conditions, Michigan businesses should give greater consideration to realizing the benefits of a foreign trade zone. The experience of Wolverine — a company with a long history of operations in the United States — is provides a powerful example. For businesses like Wolverine bringing materials into Michigan from around the world to be used in conjunction with U.S. products and materials, foreign trade zone status can be a powerful tool for finding additional cost savings and deriving a number of additional strategic benefits."

Ken Rizzio, chair of the KOM FTZ Authority Board, expressed his appreciation to Kent, Ottawa and Muskegon counties for making this specialized economic development tool available to manufacturers engaged in international trade.

The new subzone is located within the U.S. Customs and Border Protection Port of Entry in Grand Rapids and was activated on March 17.  The Van Andel Global Trade Center serves as grantee administrator of the foreign trade zone.

About Van Andel Global Trade Center:
The Van Andel Global Trade Center's mission is to strengthen the community through increased global business by providing international consulting, training, and resources. The center offers consulting and training services, resource development and facilities. Among its offerings are cultural and language education, trade missions, foreign visits and speaker series. Founded in 1999, the center was established by Grand Valley State University in response to needs identified by the business, academic, and economic development communities. The center is named after Jay Van Andel, co-founder of Amway and a pioneer of international business.

About Wolverine World Wide:
With a commitment to service and product excellence, Wolverine World Wide, Inc. is one of the world's leading marketers of branded casual, active lifestyle, work, outdoor sport and uniform footwear and apparel. The company's portfolio of highly recognized brands includes: Bates®, Chaco®, Cushe®, Hush Puppies®, HYTEST®, Merrell®, Sebago® and Wolverine®. The company also is the exclusive footwear licensee of popular brands including CAT®, Harley-Davidson® and Patagonia®. The company's products are carried by leading retailers in the U.S. and globally in 180 countries and territories. For additional information, please visit the company’s Web site, www.wolverineworldwide.com.