Alabama is without a question a leader in the automotive manufacturing sector. Hyundai Motor Co., South Korea’s largest automotive manufacturer, approved construction of a new $1 billion automotive assembly and manufacturing plant in Montgomery, Ala.
The new plant will create about 2,000 direct jobs and between 4,000 and 5,000 indirect jobs. The facility — the company’s first assembly plant in the United States — is expected to produce 300,000 vehicles per year, among them the Santa Fe sport utility vehicle.
“Our decision to build this facility in Montgomery underscores our commitment to the U.S. market,” said Mong Koo Chung, chairman of Hyundai Automotive Group. “American consumers have increasingly placed their trust in Hyundai automobiles, as witnessed by our track record of strong sales growth during the past several years.”
Hyundai selected Montgomery because of its work force, strategic location, the automotive parts supply chain in the region, and the commitment shown by the state of Alabama and the city of Montgomery, which provided the best environment for the new plant.
Hyundai will receive a $118 million incentive package from the state.
Honda Manufacturing of Alabama, meanwhile, plans to expand its Lincoln facility and create 2,000 new jobs. The $425 million expansion will add a second assembly line and increase production capacity to 300,000 engines and automobiles annually.
With this expansion, Honda’s investment in the state will increase to more than $1 billion. Honda currently employs more than 2,300 workers in Alabama and manufactures Odyssey minivans and V-6 engines.
Construction of the new production line is scheduled for completion early next year.
First Japanese Company to Break Ground
Mercedes put Alabama on the map and now residents of North Alabama are hoping that Tokyo-based Topre Japan Corp. will do the same for Cullman County. Topre Japan, investing more than $100 million, will build a 700,000-square-foot metal stamping facility by the fall, expected to bring 300 jobs to the region.
Topre America Corp. will produce parts for Honda in Alabama, Nissan in Mississippi and other automotive companies.
“The situation surrounding the automotive industry grows more competitive day by day,” said Mitsuo Kawasoko, president of Topre Japan. “Though several locations were explored [including Kentucky and Tennessee], we selected Cullman City as the base for us to compete and succeed in the tough car industry.”
Shinichiro Uchigasaki, president of Topre America, added: “Topre selected the Cullman site as the most suitable location because several automobile companies have located in the same area in recent years, some of which already have plans to increase their production in the near future.”
Topre Japan, a premiere tier-one supplier, has more than 1,200 employees worldwide and generates $60 billion in annual sales.
Aviation Firm Flies in Huntsville
Williams International, a builder of lightweight turbine engines and engine products, will hire up to 700 people at its new plant in Huntsville’s Jetplex Industrial Park.
Building the plant could position Huntsville International Airport as a hub for aircraft maintenance, according to airport officials. The project involves an investment of $262 million.
“The Huntsville plant, which will be up to 160,000 square feet, is the first new facility Williams International has built in about 30 years,” said David Carr, vice president of manufacturing and material for Williams. “This will make an ideal spot for a maintenance, repair and overhaul facility. Seventy percent of business aviation occurs in the eastern United States. Huntsville is very central.”
Shoals Lands Tissue Plant
SCA, a leading European paper producer based in Stockholm, Sweden, will build a 1.3 million square foot converting, papermaking and distribution plant in the Northwest Alabama region known as The Shoals.
SCA plans an initial investment of $240 million and expects to employ 400 people by the end of the year. The tissue plant will give a badly needed boost to the Shoals’ struggling economy, which has been hit hard in recent years by thousands of lost jobs in textiles.
Joe Raccuia, president of SCA Tissue, said the company's decision to invest in Barton, Ala., was based on several factors, including reinforcing customer service, proximity to key market areas, skilled labor force and quality of life.
- Deb Lehman
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