Amazon has paid $35 million for the Central Steel & Wire plant on the Southwest Side, completing a deal for one of the largest sites in the e-commerce company’s ever-growing distribution network in the Chicago area.
In an email, Amazon spokeswoman Caitlin Polochak confirmed the purchase and said a package delivery station is planned for the site. She said construction is expected to begin in 2023. She did not say how large the facility would be or how many people are expected to work there.
The Tribune in March reported Amazon’s plans to buy the site in the Gage Park neighborhood for about $45 million. It’s not clear why the price came in lower than expected.
The seller was Ryerson Holdings Corp., which acquired Central Steel in 2018. Central Steel opened the facility 80 years ago.
The steel company is expected to lease back the facility for a while, but it’s unclear what will happen to the operation when Amazon demolishes the plant and replaces it with a warehouse.
Ryerson representatives did not respond to requests for comment.The sprawling site is one of the largest controlled by Amazon in the Chicago area.Amazon already leases warehouse space a few blocks away at 3507 W. 51st St. in Gage Park.
