ALOM Opens New Supply Chain and Li-ion Battery Storage Complex in Sacramento

Sacramento, CA – August 28. ALOM, the global supply chain management company serving Fortune 500 corporations and emerging leaders, expanded its Western region service capacity by 66 percent with the opening of its newest 170,000 square-foot production and fulfillment facility in Sacramento, CA. ALOM President and CEO, Hannah Kain cut the ribbon officially opening the facility at an August 22, 2024 ceremony attended by civic and business leaders including Rick Balazs, Development Program Manager for Sacramento County Office of Community Development and Hayden Kandul, Business Development Manager for Greater Sacramento Economic Council. The celebration was also attended by representatives from several of ALOM’s brand-name customers whose growth made the expansion possible.

The new ALOM Sacramento facility adds significant Western region light contract manufacturing and 3PL+ services capacity, complementing the company’s two established facilities located in Fremont, CA. The Sacramento facility is the fourth new U.S. production and fulfillment facility ALOM has launched since 2017, when it opened its first Midwest regional location in Indianapolis, IN.

“ALOM is thrilled to continue moving forward with our North America expansion here in Sacramento. Seven years ago, ALOM operated out of one facility at our Fremont, California headquarters. Today, thanks to our exceptional customer base, talented staff, and our proven commitment to customer success, quality, sustainability, and technology leadership, we are celebrating the opening of our fifth and most advanced facility yet,” said ALOM President and CEO Hannah Kain.

“We could not be happier to join the Sacramento region manufacturing and economic base. The welcoming business environment, location as a central freight and logistics hub, and the talent-rich labor pool make Sacramento an ideal location for driving our customers’ continued success,” she added.

The new ALOM Sacramento facility is located at 7860 Metro Air Parkway in close proximity to the Sacramento International Airport, interstate highways, and Pacific coast deep water ports that connect ALOM customers’ products to North American and overseas global markets. ALOM plans to increase its employment in the Sacramento region by 25 percent as a result of the expansion.

An award-winning safety innovation of the new Sacramento facility is the fully partitioned 12,200-square-foot lithium-ion (Li-ion) battery storage area which is under construction. In June 2024 ALOM received the Supply and Demand Chain Executive Top Projects Award for leadership and vision engineering the standards and creating a blueprint for warehouse fire safety when stocking products containing Li-ion batteries.

Led by mobility products and energy storage systems, products powered by rechargeable Li-ion batteries are increasing. Li-ion battery demand is expected to grow by about 27% annually to reach 4,700 GWh by 2030 according to McKinsey & Company. Keeping pace with demand growth, fire risk caused by overheating Li-ion batteries is also on the rise. This risk increases when high volumes of products containing Li-ion batteries are stored in close proximity.

ALOM engaged with county and state fire safety experts and Li-ion product developers in researching current and expected future code requirements and developing rigorous safety standards for the battery storage area that include:

• Enhanced fire sprinkler protection: Automatic in-rack front facing sprinkler system are designed and installed in accordance with Highly Protected Risk (HPR) standards.
• Advanced smoke and heat detection: Highly sensitive air-sampling and thermographic infrared heat scanning enable rapid, early-stage detection.
• Partitioned battery storage: Two-hour fire-rated walls surround the storage area and fire-rated roll up steel doors are in accordance with the California Fire Code and Building Code. Horizontal steel barriers separate vertical levels of product storage within pallet racking to control fire spread.
• State of charge (SOC) level monitoring: ALOM collaborates with OEM manufacturers to ensure battery products are manufactured, shipped, and stored at the optimum charge level to reduce fire risk.

“ALOM has established itself as a pioneer in the 3PL industry for lithium-ion battery storage safety. They have implemented measures and technology that not only meet current fire codes, but also anticipate and comply with planned future regulations,” said Todd LaBerge, P.E. and Fire Marshal who consulted with ALOM on the development of the storage area.

“Li-ion battery storage is an uncharted but vitally important component of our customers’ value chain. We at ALOM take very seriously our responsibility to keep their inventory, our people, and the broader community safe in this exciting area of growth. We are proud to design and invest in a facility to fulfill these commitments now and in the future,” said Brandon Marugg, ALOM COO.

ALOM will serve its growing base of Fortune 500 customers from the Sacramento location by providing technology-driven and tailored supply chain execution, light contract manufacturing, and 3PL+ services that include procurement, e-commerce fulfillment, kitting, and returns management. Combined with ALOM’s Midwest operations, the company can process 40,000 orders per hour and deliver via ground service to 85% of contiguous U.S. addresses in less than 48 hours.

Download ALOM Sacramento Fact Sheet     Download Battery Storage Brochure