Foreign Corporations Strengthen Investments in U.S. South

Researched by Industrial Info Resources (Sugar Land, Texas)--The U.S. South has seen an influx of foreign investments in recent years by companies in the plastics, automotive, heavy manufacturing and metals & minerals sectors, to mention a few. The region is hosting 3,358 projects with a total investment value of $621.73 billion, according to Industrial Info's project database.

The states generally regarded as making up the U.S. South are Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, North and South Carolina, Oklahoma, Tennessee and Texas. There are several factors that make the region such an appealing destination: a relatively large labor pool that will work for lower wages; comparatively cheaper land; and less-influential labor unions. For companies in the automotive industry, it offers close proximity and logistical advantages to manufacturing facilities.

The Boeing Company's (NYSE:BA) (Chicago, Illinois) $1 billion investment to expand its facility in Everett, Washington, last year spurred a similar investment from Toray Industries (Tokyo, Japan). Toray is investing $1 billion to build a grassroot carbon fiber facility in Moore, South Carolina, and will be the sole supplier of carbon fiber for Boeing's 777X passenger jet for the next 10 years. Construction at the Toray facility is scheduled to begin in July, with completion set for fourth-quarter 2016. Clayco Construction Company (Chicago, Illinois) is the general contractor, and InSpec Group (Portland, Oregon) is handling the equipment installation.

Another Japanese corporation, Toppan Printing Company Limited (Tokyo), is investing $100 million to build a 127,000-square-foot grassroot facility in Griffin, Georgia, to manufacture transparent barrier film for use in food packaging. Paragon Consulting Group Incorporated (Griffin) acted as the engineering firm, with Kajima Building and Design Group Incorporated (Atlanta, Georgia), a subsidiary of Kajima Corporation (Tokyo), serving as the general contractor.

Hankook Tires (Seoul, South Korea) is investing $800 million for a two-phase grassroot plant in Clarksville, Tennessee. Pre-construction has started for the 1.5 million-square-foot first phase, which is expected to begin production by 2016 with an annual output of 5.5 million tires for cars and light trucks. Gresham Smith & Partners (Nashville, Tennessee) is the architect and Eutaw Construction (Madison, Mississippi) is the site contractor.

Giti Tires (Singapore) is investing $560 million for a 1.8 million-square-foot, grassroot plant in Richburg, South Carolina. Construction commenced in February 2015, with completion estimated for early 2017. Gresham Smith & Partners (Nashville, Tennessee) is the architect, and Shimizu America Corporation (Tokyo, Japan) is serving as the construction management firm.

Goodman Global (San Antonio, Texas) is building a $417 million, grassroot facility in Houston, Texas. Site preparation for the 4 million-square-foot plant, which is being built on a 90-acre site, started in March. Construction is scheduled to be completed in the third quarter of 2016. Powers Brown Architecture is the architect on this project, and DE Harvey Builders Incorporated is the general contractor. Goodman Global is a member of the Daikin Group (Osaka, Japan) and the world's largest manufacturer of heating, ventilating and air conditioning (HVAC) products and systems.

This trend in the U.S. South extends beyond the location of manufacturing sites. Mercedes-Benz (Stuttgart, Germany) has announced plans to move its U.S. headquarters from Montvale, New Jersey, to Sandy Springs, Georgia. Toyota Motor Corporation (NYSE:TM) (Aichi, Japan) also announced in 2014 plans to relocate its North American headquarters from Torrance, California, to Plano, Texas.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.