Auto supplier Samkee Corp to build first U.S. manufacturing plant in Tuskegee
On Friday, Alabama Governor Kay Ivey announced that Samkee Corp., a major South Korean automotive supplier, plans to invest $128 million to open its first U.S. factory in Alabama through a project that will create 170 jobs in Tuskegee and provide an economic boost for Macon County. “Alabama’s auto industry is filled with world-class manufacturing companies from around the world, and Samkee will fit right in with that group,” said Gov. Ivey. “We’re proud that the company selected Alabama for its first U.S. production center and look forward to seeing it grow and thrive in the coming years.” After finalizing agreements with state and local authorities, Samkee Corp. is poised to begin construction on the new manufacturing facility in the Tuskegee Commerce Park. It will become the city’s first auto parts manufacturer. Samkee will serve as a Tier 1 supplier to Hyundai Motor Co. According to the Alabama Department of Commerce, the new jobs will pay an average wage of just over $20 an hour. Samkee was founded in 1978. The company specializes in high-pressure die-cast aluminum components, including parts for engines, transmissions, and electric vehicles, along with alloys. The company currently operates factories in South Korea and China. Hyundai has a major automobile manufacturing presence in Montgomery. Chi Hwan Kim is the CEO of Samkee. “Samkee is a worldwide leader in quality manufactured aluminum die-cast products,” Kim said. “Our Tuskegee plant will allow our company to serve the North American market along with Hyundai’s market growth for both combustion engines and transmissions, as well as electric vehicle and battery parts.” Kim thanked Gov. Ivey for her assistance. “I give many thanks to Governor Ivey, Secretary Canfield and local officials, and Hyundai Motor for their steadfast support to Samkee in our decision today,” Kim added. Greg Canfield, Secretary of the Alabama Department of Commerce, said that Samkee’s decision to locate its first North American factory in Macon County reflects its confidence in the region’s workforce. “The skilled workers in Alabama’s auto sector have proved they are ready for any challenge the industry can throw at them, and they consistently turn out complex products of the highest quality,” said Secretary Canfield. “Samkee has come to the right place for its new U.S. industrial home.” Joe Turnham, director of the Macon County Economic Development Authority, said that local support for the project includes site work in Tuskegee Commerce Park, upgrades to the water and sewer system, and the installation of a new power substation. “Samkee appreciated the local assets, spirit of cooperation, and friendship developed over time with Macon County,” said Turnham. “We have strived with our stakeholders in a team effort to meet Samkee’s needs. We will remain partners going forward to see that they have a successful construction and manufacturing launch and future growth in the North American market. This is obviously a big win for our community and its citizens.” Tuskegee Mayor, Tony Haygood, said, “Today’s announcement is another major step in Tuskegee’s progression as a city. Samkee will be a great community partner for years to come and an example of how Tuskegee is open for business in the 21st Century marketplace. We appreciate Samkee’s partnership with us and will strive to succeed and grow together.” New automobiles and automotive parts are Alabama’s largest export. The state exported $8.9 billion worth of Alabama-made vehicles and parts last year, which approached $8.9 billion last year, an increase of 13%. Billions more are sold in Alabama and all fifty states. Alabama Industrial Development Training (AIDT), the state’s primary workforce development agency, will help Samkee assemble and train its workforce. According to an analysis by the Center for Business and Economic Research (CBER) at the University of Alabama, the Samkee factory will generate $140.2 million in annual economic output in Macon County, will add $37 million to the county’s GDP, and generating $1.3 million per year in taxes for Macon County. Production is expected to begin at the Tuskegee plant sometime next year. To connect with the author of this story or to comment, email brandonmreporter@gmail.com.
Hyundai supplier, Mobis, announce new factory bringing 400 jobs to Montgomery
Alabama Governor Kay Ivey joined executives of Hyundai Mobis in the Old House Chambers of the historic Alabama State Capital to announce the company’s plan to build a second manufacturing plant in the Montgomery area. Montgomery Chamber of Commerce Chairman Cedric Campbell said that Mobis plans to invest $205 million to open an EV battery module plant in Montgomery that will eventually employ at least 400 people. Once it reaches full production, the 450,000-square-foot facility will be able to supply over 200,000 EV batteries annually to the Hyundai Motor Manufacturing Alabama (HMMA) factory in Montgomery and the Kia Georgia plant. Hyundai plants to produce a luxury Genesis GV70 vehicle as well as an electric version of the popular Santa Fe sports utility vehicle. “Alabama’s auto manufacturing sector is evolving rapidly to capitalize on the EV revolution that is sweeping the industry, and this new Hyundai Mobis battery plant represents another milestone in that transition,” said Gov. Ivey. “We’re excited about the company’s new investment and what it represents for the next chapter of automaking in Alabama.” Mobis is one of the largest automotive suppliers in the world. “It is an honor to host you all in the state capital, and especially to have our friends from Korea, here today,” said Gov. Ivey. Ivey praised Hyundai. “We have watched the company grow more and more and have watched the company evolve to keep up with the ever-changing automotive industry,” said Ivey. “When you choose the state of Alabama to do business, you can expect the full support of the state of Alabama as well as from local government.” H.S. Oh is the vice president of the division that produces the electric powertrain business for Hyundai Mobis. Oh said that the new Alabama EV battery assembly facility will play a critical role in the company’s plans to expand its production network across the globe. “As the EV market continues to grow, having a strong production capacity will be key in allowing Hyundai Mobis to see continued growth in the market,” Vice President Oh stated. “We believe this new facility in Montgomery will be an important step in that process, and we are excited for the project to be underway.” “Governor Ivey, we thank you for the work that you, your cabinet, and your entire staff do for the state of Alabama, the Montgomery City, and the entire river region,” said Montgomery Mayor Steven Reed. “There are a lot of pieces that have to come together to have a $205 million dollar investment, especially one that produces over 400 jobs.” “We will be there every step of the way to get things up and running in this facility,” said Mayor Reed. Reed thanked the members of the industrial development board, the Governor, the county, and the Chamber of Commerce, “It is the hard work of the employees that make this possible. It is their hard work that allows us to recruit companies to this city and the river region.” “This is one of the best economic development years in memory, said Reed, who just last week welcomed Manna Beverages and Ventures to the city. “I am delighted to welcome the Mobus facility to Montgomery,” said HMMA President Ernie Kim. “Over the last ten years, Hyundai has enjoyed the support of the City of Montgomery and the State of Alabama. This facility will allow Hyundai to become a leader in electric vehicle production.” Isaiah Sankey is the Vice Chairman of the Montgomery County Commission. “Electrification of vehicles creates a green, clean economy,” said Sankey. “Electrification of vehicles makes me proud that Montgomery County will be part of cleaning up the environment.” “Thanks to the governor for all that you do that makes the state of Alabama great,” Sankey said. The EV battery module plant will expand Hyundai Mobis’ already large presence in Montgomery. Hyundai Mobis has operated a manufacturing facility on 83 acres in Montgomery since 2002 as the largest Tier 1 supplier to HMAA and Kia Georgia. The plant supplies the auto plants with complete cockpit modules and front and rear chassis modules, as well as bumper assemblies and instrument panels. “Hyundai Mobis’ investment project in Montgomery reflects an acceleration in the development of the EV supply chain in Alabama’s auto industry,” said Alabama Department of Commerce Secretary Greg Canfield in a statement. “We’re going to be a major production player in the EV market, and that’s going to trigger more growth within the sector.” Hyundai Mobis said that the construction of the new facility will be located on HMAA’s sprawling campus just off Interstate 65 in Montgomery. Construction is expected to begin as early as December. Production of EV battery assemblies is projected to begin in 2024. President Joe Biden has announced a goal of making the entire new American automobile production electric by 2030. To connect with the author of this story, or to comment, email brandonmreporter@gmail.com.
Hyundai supplier fined for child labor violations
On Tuesday, Alabama Department of Labor Secretary Fitzgerald Washington announced that the ADOL has issued and collected more than $35,000 in civil monetary penalties for violations of Alabama’s Child Labor Law. Two businesses, SL Alabama, LLC, and JK USA were fined $17,800 each for multiple violations of the Child Labor Law. SL Alabama is an automotive supplier producing headlights and mirrors for Hyundai Motor Manufacturing in Montgomery. The facility is located in Alexander City, AL. JK USA is a temporary employment agency providing workers to automotive suppliers based in Opelika, AL. Both companies were cited for: three violations of employing a minor under the age of 16 in a manufacturing facility (3 violations = $15,000), two violations of employing minors aged 14 or 15 in a prohibited environment (2 violations = $600), two violations of working minors under the age of 16 outside of permissible hours (2 violations= $600), one violation of failing to obtain the proper Class 1 Child Labor Certificate permit (1 violation = $50), one violation of failing to obtain the proper Class 2 Child Labor Certificate permit (1 violation = $50), and five violations of failing to obtain proper identification documents (5 violations = $1,500). The case, which has drawn national attention to Alabama, was uncovered following a complaint. An investigation of the facility was conducted by ADOL’s Child Labor Inspectors, along with representatives from the United States Department of Labor, the United States Department of Homeland Security, and the Alabama Attorney General’s Office. The investigation determined that SL Alabama had employed three minors, aged 13, 15, and 15, in a prohibited manufacturing environment. All three of the minors were provided by JK USA, a temporary employment agency, but were performing work at SL Alabama. The minors were operating plastic bonding machines in a prohibited occupation and location. Two other 16-year-old employees were working without appropriate record-keeping on the premises. Neither SL Alabama nor JK USA had obtained any required Child Labor Certificates for any age group. JK USA provided the underage workers to SL Alabama but did not provide documentation regarding the three underage employees until required to do so by state and federal investigators. E-Verify had not cleared the minors. This web-based system allows enrolled employers to confirm the eligibility of their employees to work in the United States but was still provided to SL Alabama by JK USA. “This practice of providing and employing underage and undocumented workers is appalling,” Sec. Washington stated in a press release. “Employee safety, especially the safety of children, is a top priority. These businesses violated the law and put these children at risk, and it will not be tolerated in Alabama. We will vigorously investigate any business or industry suspected to be participating in this illegal activity. We will continue to work with our federal partners, the U.S. Departments of Labor and Homeland Security, and our state Attorney General’s office to assist in any further investigations or potential criminal prosecutions.” The Legislature has not given the ADOL the statutory authority to levy any criminal charges for violations of Child Labor Law. Both companies have submitted the penalties in their entirety. The SL Alabama has agreed to cut ties with JK USA and punish management employees as part of the deal that the company has agreed to in a settlement of a federal lawsuit brought by the U.S. Department of Labor. To connect with the author of this story, or to comment, email brandonmreporter@gmail.com.
Local leaders want apology after allegations of child labor violations
Leaders in Tallapoosa County have called on a Hyundai supplier to apologize after federal officials accused the plant of employing children at its Alexander City plant, AL.com reported. In August, the U.S. Department of Labor accused SL Alabama of hiring workers under age 16 at its Alexander City factory. The six-page complaint gave no specifics regarding the charge. At the time, the lawsuit was accompanied by a proposed settlement. A lawyer for the company signed the consent decree which stated that the company agreed not to hire underage workers, to verify the ages of workers hired through a staffing agency, and to fire or discipline any managers aware of the use of underage workers. Alexander City leaders, including Mayor Woody Baird, along with the Lake Martin Area Economic Development Alliance (LMAEDA), released a statement saying the allegations are “egregious and unconscionable and demonstrate an utter disregard for the good faith support of all entities who worked to bring SL Alabama to the Lake Martin area.” “The violations outlined in the complaint filed by U.S. Department of Labor in Federal District Court, August 22, 2022, admitted by SL Alabama, are violations of the trust and expectations the community put into the company when the Lake Martin Area Economic Development Alliance (LMAEDA) recruited SL to locate to our area,” Baird stated. “The City of Alexander City, along with the (LMAEDA), are working to make sure that the infractions are acknowledged, corrected and a strongly worded apology issued for the shame and embarrassment their actions have caused the City of Alexander City and the area.” Baird said in an interview that area leaders “had no idea” about the allegations before the federal complaint, but they felt a combined statement was needed. “We needed to formulate a combined statement so that we could show that we’re together on this,” Baird stated. This is the second allegation of child labor against a Hyundai supplier in recent months. Reuters reported that children as young as 12 have been recently employed at SMART Alabama in Luverne. In a statement to Reuters, Hyundai said it, “does not tolerate illegal employment practices at any Hyundai entity. We have policies and procedures in place that require compliance with all local, state and federal laws.” SL Alabama was established in 2003 and is a large manufacturer of headlights, rear combination lights, and side mirrors for large automobile manufacturing companies such as Hyundai and Kia. The company employs around 650 people, which makes it the largest employer in Alexander City.
Auto parts manufacture accused of using child labor
Federal officials this week accused a Korean-owned auto parts manufacturer and supplier to Hyundai and Kia of violating federal child labor laws at an Alabama factory. The U.S. Department of Labor filed a federal lawsuit Monday in Montgomery accusing SL Alabama of hiring workers under age 16 at its Alexander City factory. The lawsuit was accompanied by a proposed settlement. A lawyer for the company signed the consent decree in which the company agreed to not hire underage workers, verify the ages of workers hired through a staffing agency, and to fire or discipline any managers aware of the use of underage workers. A federal judge has not yet signed off on the agreement. The company’s website says the factory employs about 650 people and is a large manufacturer of headlights, rear combination lights, and side mirrors for Hyundai and Kia. The lawsuit comes after a report by Reuters accused the auto parts supplier of using child labor at a plant in Luverne, Alabama. An email to the attorney representing SL Alabama was not immediately returned. Hyundai issued a statement saying, “Hyundai does not tolerate illegal employment practices in any Hyundai entity. We have policies and procedures in place that require compliance with all local, state, and federal laws.” Republished with the permission of The Associated Press.
Hyundai announces expansion project in Alabama
One car manufacturer has announced expansion plans in Alabama, Gov. Kay Ivey said. The governor announced Tuesday afternoon that Hyundai Motor Manufacturing Alabama will begin construction of a hybrid version of the Santa Fe along with the Electrified Genesis GV70 sport utility vehicles at its Montgomery factory. The company, according to the release, is expanding its production in the United States to include electric vehicles. “Over the years, we have developed an enduring partnership with Hyundai, and it’s been great to witness the profound economic impacts of the company’s continued investments in Alabama,” Ivey said in the release. “Hyundai’s new growth plans in Montgomery will help prepare the state’s auto industry for the EV revolution while also aligning with our strategic initiatives such as Drive Electric Alabama.” Hyundai, according to the release, is investing $300 million in the project and will create 200 new jobs at its lone U.S.-based production facility. The company recently signed a project agreement with Ivey. Hyundai President and Chief Executive Officer Jose Munoz announced earlier Tuesday, according to the release, that the Alabama assembly plant would be producing electric vehicles. Under the project, Hyundai will perform plant expansion projects that will provide additional warehouse space and provide assembly processes that will be enhanced to produce electric vehicles. The company plans to begin production on the Santa Fe Hybrid in October and the Electrified GV70 in December. “Hyundai Motor Company is taking its first steps in electric vehicle production in the United States,” Ernie Kim, HMMA’s president and chief executive officer, said in the release. “We are excited to showcase our team members’ skills in producing electric vehicles here in Alabama.” According to the release, the two new vehicles join the company’s roster being produced at the facility that includes the Elantra, Santa Fe, Tucson SUV, and the Santa Cruz sport adventure vehicle. Greg Canfield, who serves as secretary of the Alabama Department of Commerce, said the company’s shift to producing electric vehicles at the plant shows the future of the automotive industry. “With this EV expansion, Hyundai is again demonstrating that Alabama’s auto sector is concentrating on what the future holds for the industry and that it will continue to evolve to meet all challenges,” Canfield said in the release. “This is an exciting development both for Hyundai and for our dynamic automotive manufacturing sector.” Hyundai, according to the release, has invested more than $1.8 billion in its Alabama facilities and currently employs more than 3,200 full-time workers. According to the release, the Electrified G70 is designed as a luxury SUV, featuring a new design and driver-oriented technology. The Santa Fe Hybrid would match versatility with fuel efficiency. Republished with the permission of The Center Square.
Honda and Toyota reopen their Alabama plants with COVID-19 protection measures
Both plants had been closed since late March due to the COVID-19 pandemic.
Alabama’s largest county looks to continue economic development momentum
With the recent announcements of thousands of jobs coming into Jefferson County in connection with Amazon’s advanced robotics fulfillment center, DC BLOX’s data center and Shipt’s decision to keep its corporate headquarters in Birmingham, local officials are working from a playbook that has four steps, they say. It all begins with Alabama’s business climate that has been ranked as best in the United States for growth potential and workforce training by Business Facilities magazine, said Commissioner David Carrington, chair of the county’s Finance, Information Technology and Business Development Committee. The second is that Jefferson County is the economic center of the state, with the largest population and number of jobs. In 2016, companies announced they were going to create 14,500 jobs and invest $5.1 billion in Alabama. The Birmingham-Hoover metro area accounted for about 20 percent of those jobs and 25 percent of the capital investment. Jefferson County alone was responsible for 1,436 announced jobs and $506 million in capital investment. “In fact, the metro area’s gross domestic product is greater than Mobile, Montgomery and Huntsville combined,” Carrington said. “In 2017, according to the Alabama Department of Commerce, Jefferson County led the state with 2,200 new announced jobs in targeted industries.” The next step is collaboration among partners that often include the Birmingham Business Alliance (BBA), University of Alabama at Birmingham (UAB) and, if a proposed site is in a city, the city. “As in most successful projects, it was a well-coordinated community effort that led to a successful conclusion, and we’re very grateful to our partners and allies for their great work on this project,” said Lee Smith, East Region CEO for BBVA Compass and 2018 chairman of the BBA, after the area secured Amazon’s $325 million investment. “The county actively listens to the prospect’s needs and then participates in the development of an aggressive marketing plan with (those) partners,” Carrington said. Fourth, a project team is in place that “leverages our community’s assets,” Carrington said. “. . . We will talk about our enviable road and rail transportation network when talking to a distribution company; or UAB, Southern Research and Innovation Depot when talking to a STEM (science, technology, engineering and math) company; or our central, geographic proximity to Mercedes, Honda, Hyundai, Volkswagen, Kia and the soon to be open Toyota/Mazda plants when talking to an automotive supplier.” All of those steps are done under a positioning umbrella, he said. “Even if we don’t win a project, we want the company and their consultants to ‘have a good feeling’ about the community so we will be considered for a future project,” he said. Carrington pointed to the community’s Amazon HQ2 “BringAtoB” campaign. “The primary project team knew that Birmingham was at best a long shot, but, despite the odds, we put together an innovative vision and proposal for the company to consider,” he said. “While we didn’t win the headquarters, we caught Amazon’s attention and less than a year later announced an 855,000-square-foot advanced robotics fulfillment center in Bessemer.” Republished with the permission of the Alabama Newscenter.
Hyundai to invest $388 million to prep Alabama plant for next-generation engines
Gov. Kay Ivey joined Hyundai Motor Manufacturing Alabama LLC President and CEO Dong Ryeol Choi today to announce that Hyundai is investing $388 million to construct a plant dedicated to manufacturing engine heads and enhance existing operations to support production of new models of Sonata and Elantra sedans. The investment will create 50 new jobs at the automaker’s Montgomery manufacturing complex. Hyundai Motor Manufacturing Alabama (HMMA) is preparing for the next-generation Theta III engine, which requires new technologies and components as a part of its assembly process. Nearly all of the capital investment will be spent on equipment for the engine head machining plant, including updating technology. “Hyundai is an important member of Alabama’s dynamic auto industry, and this expansion at its Montgomery manufacturing facility will power the global automaker’s drive for future growth in the U.S.,” Ivey said. “Hyundai’s significant new investment is a strong testament to the company’s confidence in its Alabama operation and in its highly skilled workforce.” Track record “With our latest expansion, HMMA continues to show its strong commitment to the people of Montgomery and the people of Alabama,” Hyundai President and CEO Dong Ryeol Choi said at today’s announcement. “Hyundai is continuing its track record of investing in new manufacturing technologies to ensure the long-term success of our only U.S. assembly plant,” he added. Hyundai said it will cost approximately $40 million to construct the 260,000-square-foot building that will house the head machining equipment. Construction on the engine head machining plant is scheduled for completion in November. The project will free up space to expand engine assembly lines in HMMA’s two existing engine plants. HMMA will begin producing the Theta III engine in April 2019 for Sonata sedans and Santa Fe crossover utility vehicles. HMMA will continue to build the 2.0 liter Nu engine for Elantra sedans at its manufacturing facility in Montgomery. The engine plants produce approximately 700,000 engines per year to support vehicle production at both HMMA and Kia Motors Manufacturing Georgia in West Point, Georgia. In March 2017, HMMA marked the production of its 5 millionth Alabama-made engine. “Over the past 13 years, Hyundai’s Alabama assembly plant has solidified a reputation as one of the industry’s most innovative and productive manufacturing centers,” said Greg Canfield, secretary of the Alabama Department of Commerce. “Hyundai’s investment to prepare the Montgomery facility for next-generation engines underscores the strength of the alliance we have formed with the automaker and sets the stage for continued growth in this mutually beneficial relationship.” Longstanding partnership HMMA, which started vehicle production in May 2005, is the River Region’s largest private manufacturer with 2,700 full-time and 500 part-time employees. “We are so very honored that Hyundai has once again chosen to significantly invest in Hyundai Motor Manufacturing Alabama,” said Judge Charles Price, 2018 chairman of the Montgomery Area Chamber of Commerce. “As home to Hyundai’s only North American manufacturing facility, the Montgomery community pledges to continue our enormously successful 16-year partnership for this new expansion and beyond.” Hyundai has made a series of large investments to expand operations at the Montgomery facility since 2000, when the plant was first announced. In 2007, the automaker added 522 jobs with a $270 million investment at the factory, and in 2011, it created 214 jobs with a $173 million project, according to Alabama Department of Commerce records. It re-launched Santa Fe production with a $52 million project in 2016. Republished with the permission of the Alabama Newscenter.
Alabama third in nation in auto exports
According to a survey conducted by the Alabama Department of Commerce; Alabama is the third in the nation in auto exports. Mercedes-Benz is the state’s top exporter, responsible for $5 billion in shipments every year. Alabama exported a total of $7.75 billion in automobiles in 2017, coming up short of only Michigan and South Carolina. “Customers around the globe continue to seek the high-quality, high-performance products of Alabama’s auto industry, and our skilled auto workers continue to deliver what they’re looking for,” said Greg Canfield secretary of the Alabama Department of Commerce, in a news release. “The success of Alabama exports, and particularly automotive exports, helps create jobs and transform communities here at home.” Alabama-made vehicles were shipped to six continents in 2017. China was the leading market, accepting more than $2.2 billion in Alabama-built vehicles exports, a 10 percent increase from last year. Hilda Lockhart, director of Commerce’s Office of International Trade, said China is a good growth market for vehicles. “Their GDP continues to grow, and the middle class income level is increasing – thus buying cars,” Lockhart told the Associated Press. “As for Africa, this market continues to have a growing population and a lot of the people are moving to the cities. The main transportation is vehicles via the roads,” said Lockhart. “If the trend continues, Africa is an emerging market and is home to some of the top fastest-growing economies in the world.” Other top importers of Alabama-built vehicles were: Germany, Canada, Mexico, Belgium, South Korea, Australia, United Arab Emirates, India, South Africa, Chile and Saudi Arabia. Alabama’s Honda Manufacturing plant exports 8 to 10 percent of its annual output of SUVs, minivans and pickups. Exports of Honda products are limited because the plant only produces left-hand-drive vehicles, and some of their models are too large for countries with narrow roads and high fuel costs. Honda’s Alabama products were exported mostly to Canada, Mexico, Central and South America, South Korea and the Middle East. Hyundai’s Alabama plant exported nearly 5 percent of its SUVs and sedans last year. Most vehicles were exported to Canada, while some went to Puerto Rico and El Salvador.
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.
