January 2018

For real-time news on business, politics and economic development in the South, go to www.RandleReport.com. For all economic development projects announced in the South, go to www.SB-D.com.

Alabama captures Toyota-Mazda
It’s been 21 years since workers assembled the first vehicle in Tuscaloosa County at the famed Mercedes-Benz plant there. And in those 21 years, Alabama now has 57,000 workers directly employed by OEMs and suppliers. In early January, Alabama ascended to a place no state in the Southern Auto Corridor has reached. Alabama landed the huge Toyota-Mazda joint plant, giving the state four assembly operations, more than any other state in the South.  The total incentive package for the plant is right at $700 million. The state package came in at $379.9 million, with the city of Huntsville (where the plant is being built) chipping in an additional $320 million. The $1.6 billion project is expected to create 4,000 jobs with a completion date of 2021. Reports indicate that the project came down to a site in the Triad region of North Carolina and the site where the project is being built off Interstate 65 in Huntsville.

Kentucky sets record for investments in 2017
The Commonwealth of Kentucky saw new and expanded economic development investments in 2017 that totaled $9.2 billion, a state record. The three biggest deals from Toyota, Amazon and Braidy Industries totaled $4.1 billion and more than 3,000 new jobs.

Bridgestone unveils its new 30-story headquarters tower in Nashville
The new North American headquarters for Bridgestone was unveiled in the winter quarter in downtown Nashville. The $200 million tower is the fifth largest office tower in Nashville. The building houses 1,900 employees, some of which have relocated from Chicago and Indianapolis. Two floors are empty to account for future growth. Gordon Knapp, CEO of Bridgestone Americas, said at the ribbon cutting, “We look forward to calling Nashville home for the next 50 years.”

U.S. manufacturers are fired up
Unprecedented optimism from manufacturers in the U.S. has been the theme since 2010, when the word “reshoring” was apparently invented. But the latest Manufacturers’ Outlook Survey for the fourth quarter of 2017, done by the National Association of Manufacturers, rose to unprecedented heights. Of those taking the survey, 94.6 percent say they are positive about their own company’s outlook. It is the highest optimism level in the study’s 20-year history.

Manufacturing unemployment at record low
While the overall unemployment rate continues to hover around 4 percent, the manufacturing sector has never seen its unemployment rate lower than the 2.6 percent it achieved in December. The rate ties the record low in December 2000.

Manufacturing hiring tops 1 million since 2010
With 31,000 new net hires in November, the manufacturing sector has now added over 1 million new jobs since the end of the recession in the summer of 2009.

Looks like Volkswagen’s electric vehicle future is in Chattanooga
While no official announcement has been made, it looks like VW will build electric vehicles at its plant in Chattanooga, Tenn. The German automaker has began advertising on social media sites such as LinkedIn for specialized positions in Chattanooga to support electric vehicle production and design. Reports say that VW will build four electric vehicles at its only U.S. plant.

Nissan launches new LEAF in Tennessee
Nissan launched production of its new electric LEAF model in the winter quarter at its plant in Smyrna, Tenn. The new model is a milestone for the 30-year-old plant that houses 8,400 workers that assemble almost 650,000 vehicles a year.

Big deal set for Kentucky
Battery manufacturer EnerBlu is relocating its headquarters and production facility to Kentucky from California. The headquarters operation will go to Lexington and the 1 million-square-foot production facility will be built in Pikeville. The company makes batteries that power buses, trucks, military equipment and other vehicles. The $412 million project will create almost 1,000 jobs at the two locations.

Cardone Industries to build South Texas distribution center
Cardone Industries, a maker of car parts, will soon begin construction on a $50 million distribution center in Harlingen, Texas. The 920,000-square-foot facility is expected to open in December 2018. The center will support “hundreds of jobs.”

Toyota Boshoku expands in Jackson, Tenn.
Toyota Boshoku, a manufacturer of premium automotive interior systems, will invest $31 million in its plant in Jackson, Tenn. The company will add 143,000 additional square feet of space in the expansion, which will also add 139 jobs.

Automotive supplier opens new Georgia facility
Daesol Material Georgia has completed its $35 million facility in Harris County, Ga. The plant produces automotive fiber padding and will house 110 workers.

Parker Hannifin adding workers in Mississippi
Parker Hannifin, a manufacturer of motion and control systems for the automotive industry, is expanding its facility in Holly Springs, Miss. The deal will add 50 jobs.

Aerospace-auto parts manufacturer to locate plant in South Carolina
PG Aerospace, a manufacturer of precision parts for the automotive and aerospace industries, is locating a new facility in Liberty, S.C. The plant will house 22 workers.

Chinese tire plant goes to North Carolina
In the winter quarter, Chinese tire manufacturer Triangle Tyre announced it will invest nearly $580 million in a new plant in Edgecombe County, N.C. The passenger tire plant will be the first U.S. facility for the company. The project will create about 800 jobs.

Belgian manufacturer to build first U.S. plant in North Carolina
Belgium-based Dhollandia MFG, a family-owned manufacturer of hydraulic lifts for vehicles, is building a new, 160,000-square-foot plant in Bessemer City, N.C. The $30 million plant will house 150 to 200 workers.

Automotive supplier locates in Tennessee
Martin Technologies, an engineering and manufacturer for the automotive industry, will invest $6 million to locate a plant in Lawrenceburg, Tenn. The operation will include 240 new jobs.

South Carolina company to relocate HQ to Fort Lauderdale
KEMET Corp. will relocate its U.S. headquarters from Greenville, S.C., to downtown Fort Lauderdale. The company, which makes electronic components for the automotive industry as well as other industries, will lease almost 65,000 square feet of space, which will house about 150 employees.

Aftermarket auto supplier adding jobs in South Carolina
Fab Fours, an aftermarket auto accessory manufacturer, will double its workforce at its Lancaster County, S.C., plant. The company will invest $5.7 million and add 88 workers.

Auto supplier expands in North Carolina
Linamar Forgings Carolina, an automotive parts manufacturer, is expanding its facilities in Wilson County, N.C. The company will add two new products — transmission shafts and differential gears. The $6.8 million deal will create 31 jobs.

Tier 1 Hyundai supplier expanding in Alabama
Hwashin America is undergoing another expansion of its plant in Greenville, Ala. The company supplies Hyundai’s plant in Montgomery. The $23 million project will create 100 new jobs.

Auto wheel manufacturer investing in Kentucky
TOPY America, a company based near Frankfort, Ky., is investing $37 million in its plant there. The upgrades will improve both efficiency and work environment for the 325 employees working there. The plant produces 675,000 multiple wheel types a month for automakers such as Ford, Kia, Nissan, GM and Honda.

South Korean parts supplier picks Kentucky for first U.S. plant
DAE-IL, a manufacturer of powertrain parts used in the automotive industry, will invest $50 million in a new plant in Murray, Ky. The deal will create 120 full-time jobs.

Alabama parts supplier adding jobs
Germany-based Boysen Alabama is adding more equipment and 70 jobs at its plant in Vance, Ala. The company manufactures exhaust systems for the Mercedes-Benz plant in Vance.

Bosch growing Upstate South Carolina plant
Bosch Group, a maker of automotive electric components, is investing $152 million in its plant in Anderson County, S.C. The project will create 130 new jobs.

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For real-time news on business, politics and economic development in the South, go to www.RandleReport.com. For all projects announced in the South, go to www.SB-D.com. For more information on the automotive industry in the South, go to www.SouthernAutoCorridor.com.

Bosch expanding South Carolina plant
Bosch Group is investing $152 million in an expansion in Anderson, S.C. The company, which will hire 130, makes electric components for the automotive industry at the plant.

German supplier to locate plant in Alabama
German auto supplier SAS Automotive Systems, an automotive module assembler, is launching an operation that will support Mercedes-Benz and its plant in Tuscaloosa, Ala. The project will create 170 jobs.

Korean auto supplier opens second plant in Montgomery
Korean auto supplier, Guyoung Tech USA, plans to employ 130 people at a second North American plant in Montgomery, Ala. The project represents an investment of $7.5 million and the company will supply the local Hyundai assembly plant.

Parts distribution center to open in South Texas
Cardone Industries is opening a new automotive parts distribution center in Harlingen, Texas. The deal will create 515 jobs.

Nucor to build new plant in Missouri
Charlotte-based Nucor, the most active steelmaker in the South, plans to build a $250 million rebar micro mill in Sedalia, Mo., located 90 miles east of Kansas City. The company considered other locations in Missouri, Kansas, South Carolina and Florida for the plant. The factory is expected to house 255 workers. Nucor also announced it is looking to build another micro mill somewhere in the Southeast.

A new U.S. plant for Nissan?
Japanese automaker Nissan is exploring a new U.S., plant, according to its chairman, “At some point, we may need it,” said Jose Munoz, chairman of Nissan North America in an article published by Automotive News. Munoz said that its plants in Tennessee and Mississippi are “maxed out.”

Equipment installation underway at new Mercedes van plant in South Carolina
In 2015, Mercedes-Benz Vans announced it would build a new production facility for its Sprinter Van model in Ladson, S.C., near Charleston. The plant is nearing completion as equipment installation — including 182 robots — began in the fall quarter. Mercedes is expected to hire about 1,000 workers for the plant that have been trained at other Sprinter Van plants in Australia and Spain.

Bus manufacturer setting up shop in Kentucky
New Flyer of America, a manufacturer of transit buses, is setting up a 300,000-square-foot parts fabrication facility in Shepherdsville, Ky. The project is expected to house up to 550 workers.

Nissan to export Mississippi-made Titan pickups to China
The Nissan Titan has only a 1.7 percent share of the large U.S. pickup truck market as of October. Capacity of the truck at the Japanese automaker’s plant near Jackson, Miss., is limited, but whatever is left off of U.S. sales will now be exported to China, where the vehicle is popular. Other potential export markets for the Titan include Australia, Russia and the Middle East. As of the end of October, the full-sized Titan had sold about 40,000 models, which is about the number of Ford F-series pickups sold in three weeks in the U.S.

Big German automotive supplier picks Bama
German Tier 1 supplier Bocar, is investing $115 million in a new plant in Huntsville, Ala. The company will break ground on the facility next year and production will begin in 2020. The project is expected to create 300 jobs.

Automotive supplier to establish new plant in Franklin, Ky.
South Korea-based Taeyang Metal Industrial Company, a manufacturer of fasteners and cold-rolled steel products for the automotive industry, will establish a plant in Franklin. The $15.6 million facility, which will house 76 full-time jobs, is the first for the company in the U.S.

Aluminum plant opens $400 million Kentucky expansion
In the fall quarter, Belgium-based Aleris Corp. opened its $400 million expansion in Lewisport, Ky. The expansion will add new capacity to produce aluminum auto body sheet for the automotive industry. The company houses about 1,000 workers at the mill.

Mexican auto supplier expanding in Alabama
Nemak USA, a Mexican aluminum auto parts manufacturer, is investing $34 million in its plant in Talladega County, Ala. The company makes engine blocks and structural components. The deal will create 67 jobs.

Auto parts supplier expanding in Tennessee
Magnum Manufacturing, a company that supplies metal stamping, seat frames and doors for the automotive sector, is investing $2 million to expand its plant in Erin, Tenn. The move will create 50 jobs.

How many people do Japanese companies employ in the U.S.?
President Trump ruffled some feathers when he said during a visit to Tokyo in the fall quarter, “try building your cars in the United States instead of shipping them over.” Well, they do. A quick fact check shows that Japanese companies employ more than 850,000 in the U.S. (almost all of them are American citizens). And the Japanese pay well, too, more than U.S.-based companies on average and more than any other country other than Germany in the U.S.

North Carolina megasite adds 370 acres, awaits Toyota-Mazda
Officials with the Greensboro-Randolph County Megasite have added 370 acres, bumping up the site to 1,900 acres. Reports indicate the site is in the running for the prospective Toyota-Mazda project.

Mercedes-Benz will invest another $1 billion in Alabama plant

Mercedes-Benz announced in the fall quarter it will invest another $1 billion in its Vance, Ala., plant to assemble electric SUVs for the German automaker’s EQ brand. As part of the expansion, Mercedes will build a new one million square foot battery plant next to the assembly plant. This latest expansion will add 600 jobs.

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For real-time news on business, politics and economic development in the South, go to www.RandleReport.com. For all projects announced in the South, go to www.SB-D.com. For more information on the automotive industry in the South, go to www.SouthernAutoCorridor.com.

BMW CEO threatens to pull out of Southern Auto Corridor if trade restrictions are passed
BMW employs nearly 10,000 at its plant in Spartanburg County, S.C. That doesn’t count tens of thousands more American workers that supply the German automaker’s only U.S. plant. . .its second largest plant in the world. The facility is the only place where X models are made, and last year the company exported $10 billion X models through the Port of Charleston to over 140 countries. In the fall quarter, BMW CEO Harald Krueger said on BMWblog.com that he is optimistic that trade restrictions will not be implemented by the U.S. But if they are implemented, Krueger said, “If we would have trade barriers, maybe we would need to shift that production from here (South Carolina) to somewhere else because it can no longer be affordable.” It should be noted that all of the 19 major automotive assembly plants in the Southern Auto Corridor export their vehicles.

Nissan to expand Smyrna, Tenn., battery plant
Crews will expand the battery plant at the Nissan automobile factory by 26,450 square feet after the Smyrna Planning Commission approved the plans in October.

Fritz Winter opens Kentucky foundry
Germany-based Fritz Winter North America opened the first phase of its iron casting foundry and manufacturing facility in Franklin, Ky. The large-scale project will produce brake rotors and bring roughly 200 new jobs to the Bluegrass State. The company invested $110 million in the initial phase, which could grow to about $194 million with a planned expansion, and total employment could surpass 300.

Toyota debuts new Kentucky center
Toyota has opened its $80 million, 235,000-square-foot Production Engineering and Manufacturing Center in Georgetown, Ky. The facility will employ approximately 800 people, including 600 production engineers. The Georgetown facility will also help innovate and develop new technology for Toyota’s manufacturing plants across North America.

Royal Technologies expands Cullman, Ala., plant
Royal Technologies plans a $14 million expansion of its manufacturing operation in Cullman. The project is expected to create 25 jobs. The company produces polymer products, primarily plastic and foam, for the automotive, furniture and consumer goods industries.

Battery maker invests $35 million in new KC facility
Georgia-based Exide Technologies, an automotive and industrial battery manufacturer, has invested $35 million to create a state-of-the-art facility in Kansas City that will create up to 50 jobs.

Trucast expands operations in Newberry, S.C.
Trucast, a manufacturer of components for automotive engines and power generation, will invest $3 million to expand its operations center in Newberry. Part of the United Kingdom-headquartered Doncasters Group, Trucast supplies automotive manufacturers such as Borg Warner, Cummins and Honeywell.

SMW Manufacturing acquires Caterpillar operations in Lafayette County, Miss.
SMW Manufacturing is taking over operations at the former Caterpillar facility in Lafayette County. The company plans to invest in excess of $15 million and hire up to 50 employees, mostly former Caterpillar employees. SMW manufactures components for the heavy truck, automotive, mining, construction and industrial markets.

Nucor Steel announces $230 million expansion, 100 new jobs
Officials at Nucor Steel in Hickman, Ark., made a major announcement during their 25th anniversary celebration near Blytheville recently. A $230 million expansion means 100 more jobs. Company VP Mary Emily Slate said the new mill is the first of its kind. “This is the first mill in America that will take deeper reductions on higher strength steels so we can make stronger and lighter steels for many customers, including those in the automotive industry,” she said.

Hankook opens $800 million plant in Tennessee
The South Korean-based company unveiled its first U.S. manufacturing site in October at the grand opening event at Hankook’s new $800 million tire plant in Clarksville. Officials estimate 1,600 employees could be hired there.

Toyota and Mazda partner on EVs
Toyota, Mazda and Denso have signed a new partnership through which they will jointly establish a new company for the development of electric cars. Neither Toyota nor Mazda offer fully electric vehicles in their lineup yet, so the new partnership will give both automakers the basic structural components for EVs.

Auto parts company selects Memphis for new home
An auto parts supplier created in the merger of Memphis-area companies, has put its head office in Memphis. Highline Aftermarket will invest $500,000, add  91 jobs and expand its primary distribution center in Shelby County.

Plant expansion to bring 145 jobs to Burke County, N.C.
Governor Roy Cooper came to Burke County in October to tout the expansion and creation of 145 jobs at Continental’s Morganton plant. The investment coincided with the German auto parts plant’s 25th anniversary.

Toyota investing in Southern plants
Toyota just upped the stakes to remain the top manufacturer of hybrid vehicles worldwide with a $373.8 million investment in five U.S. manufacturing plants to support production of its first American-made hybrid powertrain. Of the total investment, Bodine Aluminum in Troy, Mo., receives $17 million, and $14.56 million will go to the Bodine plant in Jackson, Tenn. The automaker’s plant in Georgetown, Ky., will get $120 million to expand production of the 2.5-liter engine. Other plants in line for additional investment are located in West Virginia and Alabama.

Perrone Robotics expands in Albemarle County, Va.
Perrone Robotics, a developer of autonomous car software, will invest $3.8 million to expand its research and development operation in Albemarle County, Va. The company expects to create 127 new jobs.

Denso investing $1 billion in Tennessee plant, creating 1,000 jobs
Japan-based global automotive supplier Denso announced that the company will expand its operations in Maryville, Tenn. Denso will create approximately 1,000 jobs and invest $1 billion to make its Blount County facility a primary manufacturing center in North America for electrification and safety systems.

Giti opens in South Carolina
Giti Tires, headquartered in Singapore, has opened its first U.S. plant, set to bring 1,700 jobs to Chester County. The global company partnered with Wal-Mart as part of the retailer’s commitment to purchase $250 billion in products, supporting American jobs.

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For real-time news on business, politics and economic development in the South, go to www.RandleReport.com. For all projects announced in the South, go to www.SB-D.com. For more information on the automotive industry in the South, go to www.SouthernAutoCorridor.com.

Kamtek opens expanded Birmingham plant
Kamtek, a division of Magna, opened the $60 million, 150,000-square-foot expansion of its automotive parts facility in Birmingham, Ala., in the summer quarter. The project will add 100 workers to the plant, which currently houses 850. The company makes aluminum castings for vehicles made by Mercedes-Benz, Volkswagen and Nissan.

BMW celebrates 4 millionth vehicle made in South Carolina
In the summer quarter, BMW celebrated the 4 millionth vehicle made at its plant in Greer, S.C. The plant began making vehicles at the plant in 1994.

Brazilian manufacturer to open first U.S. facility in rural Virginia
Koinonia, a manufacturer of foam and tape solutions for the automotive, marine and heavy equipment industries, is investing almost $5 million in a new plant in Pulaski County, Va. The plant will house 40 workers.

Vehicle glass manufacturer expands in Virginia
Oran Safety Glass, a maker of specialty glass used in the manufacture of buses, military vehicles and trains, is expanding its Greensville, Va., operation. The $4.4 million project will create 55 jobs and retain 75.

German auto supplier launching new operations in South Carolina
Isringhausen, a seating systems manufacturer, is launching new operations in Charleston County in Ladson, S.C. The company, which has 50 plants in 20 countries, will make seats and assemblies for the Mercedez-Benz Vans Sprinter model.

Another megasite planned for the American South
The South is certainly not in short supply of large industrial sites of 1,000 acres or more. Add another one to the mix, this one in Chesterfield County, Va. Right before the recession a master-planned community in Chesterfield that would have contained 2,449 single-family homes, 1,331 condos, 908 apartments and 470,000 square feet of commercial space was announced. Called Branner Station, the plan was nixed by the Great Recession. Now Chesterfield wants to develop the wooded property as a 1,700-acre megasite for a large user such an an automotive or aerospace plant. The site is near Interstate 95 and the Port of Richmond.

Auto supplier expanding in West Georgia
Hyundai Dymos is adding 150 jobs to its workforce of 350 in West Point, Ga., near the Kia assembly plant. The $9.5 million expansion will add car seat capacity. The company makes seats for both the Kia plant and Hyundai’s plant in nearby Montgomery, Ala.

Has Alabama’s ROI in the automotive sector paid off?
By Michael Randle
In September 1993, the state of Alabama was highly criticized for the $253 million incentive package it gave Mercedes-Benz to locate its first plant in the U.S. in Tuscaloosa County. Alabama offered a package that was double that of what South Carolina had given to locate BMW just a year earlier.

Then in 1999, Honda announced it, too, would build a plant in Alabama. . .this one in East Alabama. That initial package totaled $158 million. In 2002, Hyundai followed Honda with its own plant announcement in Montgomery. Alabama’s initial package to Hyundai was $234 million.

Counting second and third incentive packages for expansions, the total Alabama has given out in site prep, training, tax breaks and other incentives is less than $1 billion for the three automakers.

So, to more easily understand the return on investment, let’s eliminate anything Alabama could have received from the three automakers, including the attraction of more than 250 suppliers to the state, tax generation, multipliers, spin-off jobs and anything else that’s difficult to calculate. Let’s just add up the payroll of the three automakers just at their facilities since they began operating. Why payroll? It’s something everyone understands because most of us are on a payroll.

SB&D’s estimated payroll since Mercedes, Honda and Hyundai have been operating their plants in Alabama is right at $12 billion. That’s a 12-fold ROI and that just counts payroll at the three assembly plants. What’s more, those plants will be operating 50 years from today.

Bus manufacturer expands Alabama plant
Canada-based New Flyer, North America’s largest transit bus manufacturer, is expanding its plant in Anniston, Ala. The company is investing $25 million and adding 40 new jobs.

Aluminum manufacturer investing $110 million in Tennessee
Sweden-based Granges, a manufacturer of aluminum products, is investing $110 million in its plant in Huntingdon, Tenn. to expand capacity from 160 to 200 metric kilotons per year. The company makes light gauge foil and automotive heat exchanger products. The deal will create 100 new jobs.

Japanese auto parts supplier to build new plant in Tennessee
Miyake Forging announced in the summer it will build a 45,000-square-foot facility in Hawkins County, Tenn. The bearings manufacturer will invest $13.7 million in the plant that will house 60 workers.

Alabama lands truck manufacturer
Autocar, a manufacturer of a wide variety of trucks, announced in the summer plans to build a $120 million facility near Birmingham, Ala. The plant will assemble heavy-duty, cab-over-engine trucks. The deal will create 746 jobs.

Racing  and auto parts manufacturer adding ops in Franklin, Ky.
Holley Performance Products, a top name in automotive racing and performance parts manufacturing, will establish a $9.15 million facility in Franklin, creating 30 full-time jobs.

Hino Motors Manufacturing expands in West Virginia
Japan-based truck maker Hino Motors Manufacturing will invest $100 million to relocate its assembly plant from Williamstown to Mineral Wells, W.Va. The company plans to purchase the former Cold Water Creek distribution center and convert it into a 1-million-square-foot truck assembly plant in Mineral Wells, close to its current plant.  The new plant will also house cab assembly, an operation currently conducted in Japan. The company’s president, Takashi Ono, said the move was necessary for growth and the addition of 250 employees.

Billion-dollar expansion for Mercedes-Benz in Alabama
Mercedes is spending $1 billion to make electric SUVs at its Tuscaloosa plant, as well as building a 1 million-square-foot battery plant, a logistics center and after-sales North American hub. Thanks to an earlier investment of $1.3 billion announced in 2015, the Tuscaloosa plant is currently being expanded to prepare for the production of the next-generation SUV including plug-in hybrid models. The expansion will create more than 600 jobs.

Toyota investing $374 million at five U.S. plants
Toyota Motor Corp announced a $374 million investment at five U.S. plants to support production of its first American-made hybrid powertrain. The upgrades at Toyota’s factories in Alabama, Kentucky, Missouri, Tennessee and West Virginia are part of a previously announced $10 billion in U.S. spending by the Japanese automaker.

Auto supplier JTEKT opens new plant in Tennessee
JTEKT recently held a grand opening for its new plant in Vonore, Tenn. The plant means 100 new hires for the Japan-based manufacturer of driveline and steering components.

Volvo will boost U.S. investment to $1.1 billion
Even before the first vehicle rolls off the line at Volvo Cars’ new factory in South Carolina, the Swedish automaker has nearly doubled its investment to $1 billion and promised to build a second vehicle — the next-Generation XC90 — at the site. Volvo says it will spend an additional $520 million and add nearly 2,000 more jobs, bringing total employment to nearly 4,000, to its plant under construction in Berkeley County, 30 miles northwest of the port in Charleston.

Bilstein Cold Rolled Steel opens new facility in Bowling Green, Ky.
A family-owned German manufacturer is beginning operations at its facility in Bowling Green. Bilstein Cold Rolled Steel expects to employ about 110 people at its plant, which broke ground in 2015. The company creates thin pieces of steel for a variety of industries.

Nokian Tires breaks ground on $360 million facility in Tennessee
Nokian Tires recently broke ground on its $360 million manufacturing facility in Dayton, Tenn., Rhea County’s largest foreign direct investment to date.

Borgwarner expanding in South Carolina
A manufacturer of automotive powertrains is expanding its facility in the Upstate. BorgWarner is investing $71.9 million and creating more than 160 new jobs at its plant in Oconee County, the third expansion to its Seneca plant since 2013.

BorgWarner investing $20 million, adding 75 jobs in Mississippi
Automotive supplier BorgWarner is investing $20 million and adding about 75 jobs during the next two years at its Water Valley facility. BorgWarner bills itself as a leader in clean technology solutions for combustion, hybrid and electric vehicles.

Metalsa Structural Products expands in Owensboro, Ky.
Automotive frame manufacturer Metalsa Structural Products will be adding 113 jobs at its Owensboro facility as part of a $36.5 million expansion. Metalsa plans to produce a new line of stamped and welded components.

Thrace-Linq expands South Carolina plant
Thrace-LINQ, a global supplier of fabrics for the textile industry and member of the Greece-based Thrace Group, will invest $9 million to expand its operations center in Dorchester County, S.C. The company will be adding a new production line and upgrading existing equipment to produce nonwoven fabrics used in a variety of applications, including geosynthetics, automotive, construction and floor covering.

Chinese automakers plan U.S. factory
Wei Jianjun, chairman of Great Wall Motor Co, said that the carmaker intends to set up a manufacturing presence in the US, in cooperation with two other Chinese car producers. “The three Chinese auto companies may test the waters by building a factory together,” Wei was quoted as saying, without naming the two other firms. A Beijing-based media group reports that three other Chinese automakers — Geely, Guangzhou and Chery – have all previously announced plans to enter the U.S. market. Geely and Guanzhou both said they were unaware of the plans, while Chery declined to comment. Wei described the move as “brand-building to sell cars in the US.” It also comes under a Trump administration eager to announce new manufacturing jobs.

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For real-time news on business, politics and economic development in the South, go to www.RandleReport.com. For all projects announced in the South, go to www.SB-D.com. For more information on the automotive industry in the South, go to www.SouthernAutoCorridor.com.

Kentucky has become the center of aluminum manufacturing for the automotive industry
In the spring quarter, Braidy Industries announced it will build a $1.3 billion aluminum mill in Greenup County in Eastern Kentucky. The plant will produce aluminum sheet and plate for automotive plants in the South and Midwest. The deal will create 550 jobs. With Ford using more aluminum in its vehicles that are built in Louisville, the plant is needed. Also, Toyota is undergoing a $1.3 billion expansion of its plant in Georgetown, Ky., part of which is to accommodate more aluminum parts in its vehicles assembled there. The move convinced Logan Aluminum, which for decades has made aluminum cans in Logan County, Ky., to invest $248 million in the plant to produce aluminum parts for cars and trucks.

South Carolina automotive plant moving to Mexico
Kongsberg Automotive will close its plant in Easley early next year and eliminate nearly 100 jobs. The plant makes parts for large trucks and buses.

Who’s in the running for Toyota-Mazda plant?
According to the Wall Street Journal, 11 states — Alabama, Florida, Kentucky, Illinois, Indiana, Iowa, Michigan, Mississippi, North Carolina, South Carolina and Texas — are being considered for a $1.6 billion auto manufacturing plant planned by Toyota and Mazda.

Freightliner to open $27 million logistics center in North Carolina
Rowan County’s huge Freightliner plant, owned by Portland, Oregon-based Daimler Trucks North America, will get a new $27 million logistics center and add more than a dozen new jobs to the 1,400 employees already working there. The idea is to consolidate existing warehouses and pave the way for adding more robot vehicles to the production line.

Toyota Motor North America expands Plano, Texas operations hub
Toyota Motor North America will form a new group focused on new technologies for its Toyota and Lexus vehicles. Called Connected Technologies, the group will employ approximately 100 positions and will include members from Toyota’s existing teams working on connected vehicles, information systems, and research and development.

Sentury to build North American HQ and tire plant in Georgia
Sentury Tire’s Georgia-based North American headquarters and manufacturing plant will sprawl across 1.5 million square feet, according to a filing made with the state. Last September, China-based Sentury Tire confirmed plans for a $530 million investment in LaGrange to make tires for cars and aircraft, including the landing gear tire for the Boeing 737. The first phase will employ 1,000 and include R&D and distribution centers.

Parts supplier to establish new operation in South Carolina
Germany-based Frimo Group subsidiary bo parts GmbH, a tier one and tier two supplier to the automotive industry, is establishing a new facility in Greenville County, S.C. The $4.1 million project will create 100 new jobs.

In wake of Toyota-Mazda decision, Chatham County, N.C., approves options on megasites
Chatham County has approved five-year option agreements for both the Chatham-Siler City Advanced Manufacturing Site and the Moncure Megasite. Both sites are located in Chatham County and both meet the requirements for an automotive assembly facility.

Auto parts supplier expands in Tennessee
U.S. Tsubaki Automotive is investing $35.8 million to expand its facilities in Portland, Tenn. The parts supplier will also add 70 new jobs.

Auto parts maker to expand in Mississippi
Ohio-based S&A Industries announced it will invest $4 million to expand its plant in New Albany, Miss. The company, which will hire 40, makes noise vibration damping products for automakers.

Another megasite in the South tries to land Toyota-Mazda
The Purchase Area Regional Industrial Authority that covers several counties in Western Kentucky is offering up more than 2,000 acres of free land in an effort to land the latest automotive assembly plant site search in the Southern Auto Corridor. The site is in Graves County near Mayfield, Ky. According to sources, about 15 states in the South and the Midwest are competing for the proposed $1.6 billion plant that will build Toyota Corolla models and a Mazda SUV.

Automakers in Alabama shipped vehicles to 86 countries last year
Alabama’s automotive industry is in its 20th year. Last year, Hyundai, Honda and Mercedes-Benz shipped $7.9 billion in Alabama-made vehicles to 86 different countries. The number is a 13 percent increase over 2015 exports. Germany was the top export market for Alabama-made vehicles with more than $2.4 billion, followed by China, Canada, Mexico and the United Kingdom.

Florida-Alabama megasite makes pitch to Toyota-Mazda
In the Florida Panhandle, just South of the Alabama-Florida line and Dothan, Ala., lies the 2,240-acre Florida-Alabama Mega Site. The site is relatively new to the large number of megasites in the South. Alabama and Florida officials have contacted leaders of the Toyota-Mazda joint venture to build electric sedans and SUVs. The site is located 30 miles from Dothan, 49 miles from Panama City, Fla., and 63 miles from Tallahassee. The city of Marianna, Fla., operates a municipal airport 12 miles from the site.

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For real-time news on business, politics and economic development in the South, go to www.RandleReport.com. For all projects announced in the South, go to www.SB-D.com. For more information on the automotive industry in the South, go to www.SouthernAutoCorridor.com.

European auto supplier to open first U.S. facility in Alabama
An automotive company based in Spain is investing $30 million in a new wheel assembly plant in Tuscaloosa County. Truck & Wheel Group’s move will create more than 70 jobs.

Bolta opens $49 million Alabama plant
Global auto parts supplier Bolta Group has opened its new $48.7 million production facility at the Tuscaloosa County Airport Industrial Park. The factory will add 350 to its current staff of 200. Bolta manufacturers parts such as nameplates and decorative trims for the automotive industry.

German logistics firm launches in Greer, S.C.
Rudolph Logistics Group is launching a new warehousing operation in Greer, bringing more than $18 million of capital investment to the Upstate and creating at least 150 new jobs. Its customers include Audi, BMW Group, Continental and Mercedes parent group, Daimler.

BMW facility to draw thousands to College Park, Ga.
BMW plans to open a training center in College Park next to the Georgia International Convention Center, moving the training out of its Southern region headquarters in Sandy Springs. Officials in College Park expect the training center will draw as many as 10,000 BMW workers annually for corporate training. At 53,000 square feet, the new $16.6 million center will be four times as big as the old one. It will mainly be used for interactive training of dealership employees.

Gateway Tire to invest $11 million in Alabama
Gateway Tire, a wholesale distributor of brands such as Toyo and Hankook, announced plans  to invest $11 million to open a 200,000-square-foot tire distribution center in Dothan.

Shapiro Metals opens second Alabama plant
Shapiro Metals recently launched its 11th North American plant with the opening of a new 20,000-square-foot facility in Decatur, Ala. The plant recycles metals from aerospace, trailer manufacturing, automotive and medical device customers.

Calsonic Kansei undertakes major expansion at Mississippi plant
Japan-based automotive supplier Calsonic Kansei will invest $16.33 million to expand its manufacturing plant in Madison, Miss. The company plans to create 98 new jobs, bringing its total employment in the area to about 600. Calsonic Kansei is a supplier to Nissan’s Canton automotive assembly plant.

Netherlands-based manufacturer bringing 71 jobs to Spartanburg County
Netherlands-based AWL-Techniek, a producer of high-tech welding machines primarily for the automotive market, will invest $2.53 million to establish its first plant in the U.S. The project also means 71 new hires.

Auto supplier adding 98 jobs in Tennessee
Automotive supplier Cooper Standard will create approximately 98 new jobs at its facility in Surgoinsville. Alongside the new jobs, the company, which is headquartered in Michigan, is investing $1 million in new plant equipment.

Electro-Spec launching new operations in Lexington County, S.C.
Electro-Spec, a specialty plating manufacturer for the aerospace and auto industries among others, is locating new production operations in Lexington County. The development is projected to bring $3.1 million of capital investment and create 53 new jobs.

Honda supplier expanding and hiring in Alabama
A Canada-based automotive metal-forming company is planning another facility for its plant in Sylacauga, Ala. Fleetwood Metal Industries is building a 60,000-square-foot facility close to its current plant in Sylacauga’s industrial district, and plans to hire 70 more employees by year’s end.

Toyota opens the doors of its billion-dollar campus
About 2,000 team members are arriving at Toyota North America’s new 100-acre, 2.1 million-square-foot campus it expects to operate for the next 60 years.

Giti Tire building $560 million campus
Singapore-based Giti Tire, the 10th largest tire company in the world, is on track to open its first North American manufacturing and distribution facility on a 1,100-acre site, 170 miles northeast of Charleston, in Richburg, S.C. The company expects to invest $560 million and create 1,700 new jobs over the next decade in Chester County.

Automotive supplier to build in Charleston County, S.C.
Knapheide Manufacturing Co. announced recently it is opening a new manufacturing facility in Charleston County, expected to bring an investment of $1.3 million and create 63 jobs. The new plant will install van interiors and bodies for Mercedes-Benz

BMW commits to new jobs in U.S.
BMW AG is the latest auto maker to commit to new jobs at a U.S. factory following criticism from President Donald Trump, saying it will create 1,000 American jobs through 2021 as it works to boost its production of sport-utility vehicles in South Carolina. The jobs are part of a $600 million investment planned for the German auto maker’s Spartanburg factory.

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For real-time news on business, politics and economic development in the South, go to www.RandleReport.com. For all projects announced in the South, go to www.SB-D.com. For more information on the automotive industry in the South, go to www.SouthernAutoCorridor.com.

 More manufacturing jobs reshored in 2016 than offshored

According to the Reshoring Initiative, for the first time in decades, more manufacturing jobs reshored to the U.S. than offshored in calendar year 2016. Last year, 77,000 manufacturing jobs (tying the 2014 record) reshored and 50,000 offshored, giving the U.S. a net gain of 27,000 jobs. On average from 2000 to 2006, about 220,000 jobs offshored each year. That has now dropped to about 50,000 and that total continues to drop. According to the Initiative, the South remains the top region for reshoring and foreign direct investment with the Midwest coming in second. Since 2010, more than 338,000 manufacturing jobs have reshored back to the U.S.

Chinese FDI in the U.S. continues strong run

Chinese investment in the U.S. continues to mostly be mergers and acquisitions, but there is a growing list of greenfield projects. Chinese FDI is not slowing down in 2017 as some experts have predicted it would. In 2016, the Chinese invested $46 billion in the U.S., making it one of the largest sources of foreign direct investment in the U.S. The $46 billion blew past the previous record of $15 billion from the Chinese in 2015, according to the Rhodium Group. Among the largest acquisitions last year were HNA Group buying networking and software distributor Ingram Micro for $6 billion and Chinese appliance maker Haier Electronics’ purchase of General Electric’s appliance unit for $5.4 billion. According to Rhodium, there were 40 Chinese deals valued at $9.3 billion in the first quarter of this year. Nine of those projects were located in the South.

China automaker Great Wall Motor to build North American plant

In May the CEO of China’s Great Wall Motor Company said that the company is searching for sites in Mexico and the U.S. to build a new assembly plant. Great Wall is China’s largest SUV and pickup truck manufacturer. Officials with the company told Reuters that the site choice will depend on trade issues among the U.S., Mexico and China.

Mercedes’ big Alabama expansion finishing up

Fifteen months after the groundbreaking, the new $1.3 billion, 1.3 million-square-foot Mercedes-Benz body shop at its plant in Vance, Ala. is nearing completion. Most of the construction is finished and it’s now time to install state-of-the-art equipment before the shop can be operational sometime next year. When completed, nearly 1,000 robots will help assemble 300,000 vehicles a year. Driverless, auto-guided vehicles will use 36,000 magnets that have been installed in the floor of the body shop to deliver components and the vehicles to each work station. The magnets will replace the traditional conveyor belts that typically more parts and vehicles through the shop. For more information on the South’s automotive industry, go to SouthernAutoCorridor.com.

U.S. sets record in emission reduction

Last year was the second consecutive year of carbon emissions from electric power plants dropping by 5 percent, a new record. It’s the first time in more than 40 years that emissions have fallen so far over two years. Overall, carbon emissions from energy use fell 1.7 percent last year, following 10 years of a shrinking carbon footprint in the U.S. Several things are supporting the lower emissions, including Americans using more renewable energy each year and power plants using less coal and more natural gas.

Kentucky sets annual investment record in first five months of 2017

Kentucky has set its annual capital investment record in May, thanks to investments by Toyota, Amazon and others earlier in the year. Gov. Matt Bevin announced May 26 that the state has raised $5.8 billion in investment commitments from companies locating or expanding in the Commonwealth. The previous record was $5.1 billion in calendar year 2015.

Automotive, aerospace industries prompt big deal in Eastern Kentucky

In the spring, startup aluminum manufacturer Braidy Industries announced it will build a 2.5 million-square-foot, fully-integrated aluminum rolling mill in Eastern Kentucky that they say will be the “most technically advanced mill in the U.S.” The plant will produce about 370,000 tons of aluminum per year. The $1.3 billion project will create 1,000 construction jobs and 500 full-time, high-paying jobs in Greenup County. Growth in the automotive and aerospace industries and their increased use of aluminum as a lighter replacement of steel prompted the building of the new mill. As of May 2017, Eastern Kentucky has lost over 8,000 coal jobs, meaning the mill located near Ashland on the Ohio River should have plenty of labor available in what is an ever-increasing tight labor market in the American South.

Louisville ranked No. 1 by Forbes in manufacturing resurgence

In the summer quarter, Forbes ranked Louisville the No. 1 city in the nation where manufacturing is thriving. Much of Louisville’s manufacturing base is in the automotive sector with two Ford plants in the city and a Toyota plant nearby. The Louisville region’s manufacturing jobs have increased by 30 percent since 2011.

BMW will expand its South Carolina plant once again

BMW announced another expansion of its massive manufacturing plant in Spartanburg County, S.C. The company already employs about 9,000 workers at the plant. This latest expansion calls for a $600 million investment and 1,000 more jobs.

TVA approves $300 million strategic fiber expansion

The Tennessee Valley Authority Board of Directors approved a $300 million strategic fiber initiative that will expand the company’s fiber capacity of its transmission system. The expansion will meet the power company’s bandwidth to accommodate new distributed energy resources. TVA’s expanded fiber network will also make available added capacity to local communities in rural areas of the South to help attract jobs.

Auto supplier adding jobs in Cullman, Ala.

Topre America, a manufacturer of metal components for automakers, is investing $36 million in its plant in Cullman, Ala. The project will create 65 jobs.

Ford investing $900 million in Kentucky Truck Plant

In 2015, Ford Motor invested $1.3 billion and added 2,000 jobs at its Kentucky Truck Plant in Louisville to build the Ford Super Duty truck. Now the company is investing another $900 million in the same plant to increase capacity in assembling Ford Expeditions and Lincoln Navigators, many of which will be exported. The project will retain 1,000 hourly jobs. Ford operates another assembly plant in Louisville that builds small SUVs, mainly the Ford Escape.

Continental to expand Seguin, Texas plant

Automotive tech supplier Continental AG is investing $113 million in its Seguin, Texas plant, which produces engine control units, sensors and blind spot detection safety systems. The expansion will create 100 new jobs.

Ohio manufacturer sets up shop in Tennessee

Ohio-based Pennant Moldings, a manufacturer serving the automotive and appliance industries, will invest $8.6 million to build a facility in Lebanon, Tenn. The project will create 60 jobs.

GM unveils new North Texas supplier park

General Motors will establish a new parts supplier park and create 850 jobs — 600 that will be reshored from Mexico — to support its full SUV assembly plant in Arlington, Texas. The park will feature 1.2 million square feet of space. The automaker has almost completed a $1.3 billion expansion of its assembly plant in North Texas that houses about 5,000 workers. The plant is the exclusive producer of the Tahoe, Yukon and Escalade GM models.

German company to build plant in Auburn, Ala.

Winkelmann Group, a German company that manufactures metal parts for the aerospace, automotive and defense industries, will invest $12 million in a new plant in Auburn. The project will create 50 new jobs.

Chinese auto supplier to open Tennessee plant

Minth Group, a Chinese manufacturer of body, trim and decorative parts for the automotive industry, will renovate an existing building in Lewisburg, Tenn., for a new parts plant. The $13 million project will generate 200 jobs.

Auto parts supplier to locate in Georgia

Carcoustics, a German auto parts supplier, will invest $6 million in a new facility in Buford, Ga. The company, which will make solution-oriented acoustic components, will create 200 jobs.

Japanese auto parts supplier to build new Tennessee plant

Japan-based Miyake Forging will build a new $13.7 million bearings plant in Surgoinsville, Tenn. The plant, in Hawkins County in Northeast Tennessee, will house 60 workers.

Mercedes-Benz van plant begins hiring process

Mercedes-Benz Vans is completing its plant in North Charleston, S.C., and has begun the hiring process. The company expects to hire 1,000 workers within three years at the plant.

South Carolina captures another mammoth tire plant

Chinese tire maker Wanli Tire is planning to invest up to $1 billion in a new plant in Orangeburg, S.C. The state is expected to provide $40 million to assist in developing the site in Orangeburg County. The project is expected to create up to 1,200 jobs. South Carolina produces more tires than any other state in the U.S. and is home to foreign-owned tire makers based in France, Japan, Germany, Singapore, Sweden and China.

Demand for Ford Escape best in history

The automotive industry is preparing for a drop in overall sales this year, but depending on the model, some automakers are still at three shifts, 24/7. Demand for small SUVs like the Ford Escape has never been higher. Ford makes the Escape at is plant in Louisville. Ford will shorten its traditional two-week summer shutdown to one week in order to assemble 8,500 additional Escape models this year.

Montgomery creates more jobs than any county in Alabama

Who won the job creation crown in Alabama in calendar year 2016? It was the capital county of Montgomery. The county created 1,704 jobs in 2016, followed by Madison County with 1,548 jobs. Montgomery’s year, which earned it an honorable mention in this issue’s SB&D 100, was highlighted by a German auto parts maker’s $37 million new plant.

Mississippi’s jobless rate lowest since 1976

In May, Mississippi’s unemployment rate fell to a record low of 4.9 percent. The rate is the lowest since current unemployment surveys began in 1976. A year ago, Mississippi’s unemployment rate was at 6 percent.

It costs less to operate your business in the South

According to a report published in the spring quarter by Chicago-based Anderson Economic Group, eight of the 15-lowest business tax burdens are states in the South. Oklahoma had the lowest tax burden for businesses and North Carolina had the third-lowest. Making the top 15 in lowest business costs in the South were Missouri, Georgia, Texas, Louisiana, Tennessee and Alabama.

Tennessee is the first state in the nation to make community college free to all adults

Tennessee lawmakers approved legislation in the spring quarter that will expand the Tennessee Promise education program that was launched in 2014 that made community college tuition and fees free for recent high school graduates. Now, adults who do not have a two or four-year degree can attend for free as well starting in the 2018 fall semester.

Ports in the South breaking records in part to expanded Panama Canal

With an expanded Panama Canal, large Asian cargo ships can reach ports in the South much easier and faster and increased trade in the last year proves it. Ports in Georgia and Virginia each moved the most cargo ever in May and the port in Charleston, S.C. had its best month ever in overall volume in March and July to May volume is up 9.4 percent.

Canadian auto parts manufacturer setting up shop in rural Tennessee

Canada-based Tennessee Tool and Fixture, a maker of automotive mold and castings, is setting up shop in Manchester, Tenn. The $6.5 million plant will house 60 workers.

Auto supplier opening plant in North Carolina

Borealis Compounds, a maker of plastic materials for use in fenders, dashboards and grills, will open a new plant in Alexander County, N.C. The company, which supplies GM, Ford, BMW, VW, Volvo and other automakers, is investing $15 million and will hire 37 in the deal.

Volkswagen adding 200 jobs at Chattanooga plant

VW is adding 200 more workers to the 1,000 who have already been hired since December. The German automaker began assembly of the Atlas SUV earlier this year. VW employs about 3,500 at the plant as of June.

Knapheide Truck Equipment plans North Charleston facility

Knapheide Truck Equipment Company Charleston Inc. will invest $1.3 million to open a 75,000-square-foot manufacturing, operations and installation facility in North Charleston, S.C. Designed to upfit the Mercedes-Benz Sprinter and Metris vans, the company will be installing van interiors and more. The projected is expected to create 63 new jobs.

Auto supplier adding jobs in North Carolina

FCC North Carolina announced plans to create 28 jobs and invest nearly $1 million as part of an expansion in Scotland County. FCC, a division of a Japan-based automotive parts manufacturer, has two plants in Scotland County. One manufactures clutch and transmission parts, the other manufactures friction material. Primary customers include Honda, Ford and Fiat Chrysler.

Smyrna, Tenn., auto supplier announces $25 million expansion

The North American arm of France-based automotive supplier Valeo announced a $25 million expansion of its Smyrna facility, adding 80 new jobs. Valeo focuses on smart-driving technology and products that help reduce CO2 emissions.

German auto supplier Ifa expanding Charleston ops with $69 million facility

A longtime Charleston area automotive supplier, IFA (a German-based company that produces parts for automakers including BMW and Volvo) is building a $69 million facility in Berkeley County and will add about 120 new jobs to its existing workforce. The company makes driveshafts for passenger cars and light commercial vehicles.

Protomet to invest $30 million in Loudon County, Tenn.

An Oak Ridge, Tenn.-based engineering and manufacturing supplier for the automotive, marine and energy industries will spend nearly $30 million to renovate the former Maremont factory in Loudon County and add 200 jobs over the next five years.

Eldor’s 350-job auto parts plant progressing in Botetourt County, Va.

Eldor Corp.’s high-tech automotive parts factory in Botetourt County is on track for test runs in January 2018 and occupancy by late April. About 350 people are slated to be working at the plant within five years, with another 300 to be added after that, marking the largest expansion of new manufacturing jobs in the Roanoke Valley in at least a decade.

Czech manufacturer coming to Peachtree City, Ga.

A leading producer of technical compounds and polyester staple fibers based in the Czech Republic will invest $20 million in a new facility in Peachtree City, creating more than 20 jobs. SILON’s polyester fibers and polyolefin compounds are used in the automotive, construction and medical sectors, among others.

Bluegrass Supply Chain Services investing $3.35 million in Kentucky, creating 51 jobs

Bluegrass Supply Chain Services, a logistics provider for the automotive and food and beverage industries, will invest more than $3.35 million and create 51 jobs at two locations — a new operation in Edmonson County and upgrades at its Bullitt County facility. The new jobs will bring its total Kentucky employment to about 590.

Aluminum company investing $26 million in Florida

ATIO USA, an aluminum recycling and manufacturing company, will open a new facility in Clewiston, Fla. The project will create 39 new jobs and a $26 million investment. ATIO USA will use scrap and waste aluminum and primary raw material to manufacture an alloy known as Green Billets for the global automobile industry and OEM suppliers.