Aluminum Technology Schmid, Inc. has announced plans to locate its first North American manufacturing operation in Auburn, Ala.

Aluminum Technology Schmid is a German precision machining company specializing in high-end aluminum parts for hydraulic applications in the automotive industry employing about 200 people. Schmid was recently selected as supplier to an Alabama based company that supplies hydraulic pumps for Mercedes-Benz and future Chrysler car models manufactured in North America.

The company will occupy a 10,000 square foot building located at the Auburn Center of Developing Industries at 1500 Pumphrey Avenue. Production is scheduled to begin in October. Once in full operation in 2008, the company will have invested $5 million in capital investment and employ approximately 40 people.

“The fact that the City of Auburn offered us to start our operation in one of its incubator buildings allowed us to commit to a tight ramp-up production schedule as dictated by our customer,” said Christoph Dörr, president of Aluminum Technology Schmid. “In combination with the favorable business environment in Alabama it made our investment in Auburn a reality. Without the support from the City and its staff, an investment decision by a family owned midsize company like us could not be made.”

The company is starting immediately with the hiring process.

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