International bicycle manufacturer Orbea, whose U.S. operation, Orbea USA, is based in Little Rock, plans to consolidate its West Coast and East Coast distribution centers into one location in North Little Rock.
Orbea USA, which has a showroom at 119 Main St. in downtown Little Rock, has agreed to lease a 14,000-square-foot warehouse in the NorthShore Business Park in North Little Rock, said Gonzalo Garcia de Salazar, general manager for Orbea USA.
North Little Rock's central location in the United States was one reason Orbea USA decided to close its distribution centers, Salazar said.
"By having only one warehouse here, we can use better logistics and provide better service to our customers," said Salazar, who also said being centralized should lower shipping costs.
Orbea is leasing about a third of a building at 5200 Northshore Drive, said Jeff Hathaway of Coldwell Banker Commercial Hathaway Group, who handles leasing at the business park.
One attraction for Orbea to the business park, Hathaway said, is the nearby Arkansas River Trail, a paved trail that runs west along the river from downtown Little Rock and North Little Rock.
"There is a natural tie-in there," Hathaway said. "The business park has a spur that comes in almost across the street from the warehouse facility and connects to the River Trail."
Orbea has 12 employees in the Little Rock area. Salazar said he will add several employees with the opening of the warehouse in North Little Rock, but he was unsure how many. He declined to say the salaries the employees make.
Little Rock has been the U.S. headquarters for Orbea USA since 2013.
Orbea is celebrating its 175th year in business in 2015. The company sells its bicycles through about 200 dealers in the United States, Salazar said. Its parent company, Orbea S. Coop. of Mallabia, Spain, has made some of the best bicycles in the world since 1840, he said.
For 12 years, Salazar was the country manager in Madrid for the U.S. firm Trek Bicycle Corp. He moved to Little Rock in November to become general manager of Orbea USA.
While working for Trek, Salazar moved Trek to the second best-selling brand in Spain, behind Orbea.
Salazar also is a director on the board of Orbea S. Coop.
Salazar laughed when asked about the difference in Madrid and Little Rock.
Moving to Little Rock was a big change, he said.
"Little Rock is totally different to the European cities," said Salazar, who lives in the Argenta area. "The most difference is that the downtown is almost empty. The city is working very hard to improve the downtown, which is great. In European cities, the life is downtown. In Little Rock, the life is around the city and in the suburbs."
He made the change because he wanted to live in the United States, Salazar said.
"For me, this is a big challenge," Salazar said. "For me, it may be the biggest challenge I will have in my life."
Salazar expects to see major growth in the Little Rock store in the next two or three years.
The prices of Orbea bicycles available in Little Rock range from about $350 to $12,000, Salazar said, with the $12,000 bicycle designed for professional riders.
Business on 03/14/2015