German automotive supplier announces $3.4M expansion
A German automotive supplier has announced an expansion of its operations in Alabama that will create nearly 80 new jobs. Eissmann Automotive, in a news release Monday, said it is putting $3.4 million into new equipment for its new production line at its facility in Pell City. The company also said it expects to hire an additional 79 people to support the production in St. Clair County. Eissmann Automotive supplies car interior, trim components, shifter modules, and other parts for Mercedes-Benz, Audi, Jeep, Tesla, Porsche, Volkswagon, and other automakers. It has 13 locations on three continents. “This is a testament both to the company’s ability to produce a great product and the faith they have in St. Clair County’s workforce,” St. Clair County Commission Chairman Stan Batemon said. Eismann Automotive Plant Director Tracy Breeding said the company is “very pleased” to work with Pell City, the county commission, and the state’s Department of Commerce. “They have been wonderful partners as we continue to invest in Pell City to provide quality service and products to our valued customers,” Breeding said. Republished with the permission of The Associated Press.
Alabama auto sector primed for growth with $1 billion in new investment
Alabama’s auto industry continues to thrive, racking up new jobs and investments in communities across the state. Last year, there were at least 68 auto projects, for an estimated total of 3,848 jobs and $907.1 million in new capital investment, according to an analysis of the 2016 New & Expanding Industry Report. New projects announced this year push that total past $1 billion and add hundreds of more jobs. The projects included new companies and expanding operations, which manufacture everything from intricate vehicle parts and major component systems to entire automobiles. “Our deep roots in the auto industry keep growing deeper,” said Greg Canfield, secretary of the Alabama Department of Commerce. “Last year alone, there were new or expanding auto companies in 26 Alabama counties, showing the vast reach of auto production in Alabama.” The foundation of the state industry is made up of three auto assembly plants operated by Mercedes-Benz, Honda and Hyundai, as well as a major engine plant for Toyota. The 2016 projects included Hyundai’s $52 million investment in upgrades to its Montgomery plant to bring the Santa Fe SUV back to its assembly lines. Another was the 535-job expansion of Tuscaloosa County’s Lear Operation Corp., which supplies seating systems to the Mercedes factory in Vance. Among the other highlights were MöllerTech USA LLC’s new $46.3 million, 222-job facility in Bibb County and a $14.5 million, 200-job expansion for Eissmann Automotive North America Inc. in St. Clair County. Both manufacture parts for car interiors. Elsewhere, Spain’s Truck & Wheel Group is building its first U.S. parts plant in Tuscaloosa County, where it’s investing $30 million in an operation that will employ 70 people. In Lee County, The Berghoff Group announced a $30 million, 100-job precision machining facility. Hyundai invested $52 million in its Alabama assembly plant to launch production of the Santa Fe Sport SUV. (Contributed) Promising outlook As Alabama’s auto industry marks a key milestone – two decades of vehicle production – the sector’s growth prospects continue to look strong in 2017. Mercedes, for example, recently held a supplier forum at its plant to discuss its next-generation SUVs. Officials for the automaker underlined the current and future importance of SUV production in Alabama during personal discussions with partners including Lear, SMP and Kamtek. They also emphasized the successful partnership that has grown over the years since the first Mercedes M-Class rolled down the automaker’s Alabama assembly line on Feb. 14, 1997. “The increasing requirements due to a continual rise in production numbers for the SUV segment was a massive challenge for all suppliers, which was mastered very well,” said Dr. Klaus Zehender, member of the divisional board of Mercedes-Benz Cars, Procurement and Supplier Quality. Jason Hoff, president and CEO of the Alabama operations, Mercedes-Benz US International Inc., echoed those comments. “These are exciting times for our Alabama facility as we prepare to take on this new challenge to build the next generation of SUVs,” he said. “Mercedes-Benz became the first auto manufacturing plant to build vehicles in Alabama more than 20 years ago and, since that time, other automakers and suppliers have joined us. “Our suppliers have found – just as we have – that Alabama is a great place to do business,” Hoff added. Commerce Secretary Greg Canfield, left, presents MollerTech leaders with an Alabama seal at a groundbreaking ceremony last year. The company is one of several auto suppliers that announced projects in Alabama during 2016. (Contributed) 2017 momentum Meanwhile, 2017 has brought new auto sector projects to Alabama, setting the stage for more growth across the state. Among them: Auto supplier Hanwha Advanced Materials America LLC plans to invest $20 million to upgrade its manufacturing facility in Opelika, adding 100 jobs over the next three years. Honda announced plans to invest $85 million at its Lincoln plant in the first phase of a multi-faceted project to improve manufacturing flexibility, strengthen logistic efficiency for future models and prepare for future technologies. Spain-based auto supplier Grupo Antolin announced plans to invest nearly $10.4 million to establish a manufacturing facility in Jefferson County that will employ 150 people by 2020. Republished with permission of Alabama NewsCenter.
Alabama foreign investment tops $1.5 billion in 2016, creating 3,250 jobs
Businesses based in countries around the globe continue to find a welcoming home in Alabama, as the state’s foreign direct investment (FDI) reached $1.57 billion last year, driving job growth in several industries. Expansions accounted for the vast majority of the 79 FDI projects announced by companies in 17 different countries. But there were notable new projects, too. A total of 3,254 new jobs were tied to the overall investment, according to the 2016 New and Expanding Industry Report, which was released last month by Gov. Kay Ivey and the Alabama Department of Commerce. Overall, the state landed nearly $4.2 billion in capital investment and more than 14,700 new jobs. “The success of the companies operating in Alabama is a story that’s being told around the world,” said Greg Canfield, secretary of the Alabama Department of Commerce. “Here at home, that’s meant significant new investments and lucrative jobs for communities across the state.” FDI has represented a powerful growth engine for Alabama, with foreign companies announcing $7 billion in new capital investment in the state since the beginning of 2013, according to Commerce data. Top FDI sources Austria led the way in FDI during 2016, with a total investment of $666.1 million. That was due mostly to two major expansions of existing companies in the state. Kronospan, a leading manufacturer of wood-based panel products, announced plans to invest $362 million in its Calhoun County operations and add 160 jobs. Another Austrian firm, Lenzing AG, said it would spend $293 million to expand production of an eco-friendly, botanic fiber at its Mobile County plant. The project is also creating 163 jobs. A third Austrian firm, auto supplier voestalpine, announced plans for an $11 million manufacturing facility in Jefferson County with 42 jobs. Other countries that were in the top five for FDI were: Germany — $213.5 million South Korea — $155 million Canada — $145 million Spain — $131.7 million In terms of new jobs, German companies announced the largest overall total for Alabama last year, with 1,187. Those projects included a new plant in Bibb County for automotive supplier MollerTech USA LLC, which plans a $46.3 million investment and 222 jobs. There was also an expansion in St. Clair County for Eissmann Automotive North America Inc., an automotive supplier that is adding $14.5 million and 200 jobs. Other top countries for total jobs were: Canada — 527 jobs Austria — 365 jobs South Korea — 347 jobs France — 333 jobs FDI and jobs also came from companies in other countries, including Australia, Belgium, Finland, Israel, Italy, Japan, Mexico, Switzerland, Taiwan, Thailand and the United Kingdom. Canfield recently led a trade mission to Canada, the state’s top international trade partner. Auto driver Auto industry projects dominated the entire list of FDI activity. Another major expansion in this sector was in Jefferson County, where Spain’s Gestamp announced plans to invest $131 million in its metal stamping operations. Alabama Commerce Secretary Greg Canfield, left, presents MollerTech leaders with an Alabama seal at a groundbreaking ceremony. (Made in Alabama) In addition, other suppliers for automakers Mercedes-Benz, Honda, Hyundai and Toyota –- and in some cases, the manufacturers themselves –- took steps to expand their Alabama facilities. Foreign direct investment plays a key role in the U.S. economy, according to SelectUSA, which works to facilitate job-creating business investment in the United States. About 6.4 million U.S. workers were employed by U.S. affiliates of majority foreign-owned firms in 2014, the latest data available. In addition, these companies account for $57 billion in research-and-development spending, and their total contribution to U.S. exports is estimated at $425 billion. In Alabama alone, 92,700 jobs are directly supported by majority foreign-owned affiliates, SelectUSA figures show. From July 2007 to June 2016, a total of 221 greenfield, or new, FDI projects were announced in the state. Nearly a quarter of them were by companies based in Germany, which is no surprise, since that’s the corporate home of Mercedes. Japan, home to Honda and Toyota, and South Korea, home to Hyundai, trailed close behind at 18 percent and 17 percent, respectively. Republished with permission of Alabama NewsCenter.
