Alabama's Automotive Industry Booming with $6.2 Billion in Active Projects

Researched by Industrial Info Resources (Sugar Land, Texas)--The Automotive Industry has enjoyed a growing presence in Alabama since 1993, when Daimler AG (Stuttgart, Germany) started work on an assembly plant in Vance for the production of Mercedes Benz vehicles. Many manufacturers have migrated to the southern states over the last 30-plus years and major automakers Hyundai Motor Company (Seoul, South Korea) and Honda Motor Company (NYSE:HMC) (Tokyo, Japan) have opened large production facilities in the state. Industrial Info is tracking $6.2 billion in active Automotive Industry projects in Alabama.

A joint venture between Toyota Motor Corporation (NYSE:TM) (Toyota, Japan) and Mazda Motor Corporation (Fuchu, Japan) recently announced it will construct a $1.6 billion manufacturing plant in Huntsville, Alabama. Such facilities also have attracted development by many automotive suppliers, seeking to keep the supply chain short, and increase their market share. This has fueled many new and ongoing projects for the industry in Alabama.

Original equipment manufacturers have been expanding their operations in Alabama. At the Mercedes plant, two expansions of the assembly plant are under construction, and a new battery plant for electric vehicles is being developed, amounting to $2.4 billion in current and future capital expenditures.

Hyundai is planning a $1.2 billion, two-phased expansion of its facility in Montgomery, and Honda is working on plans for an $85 million expansion of its manufacturing plant in Lincoln. Toyota, in addition to the automotive assembly plant already mentioned, has an engine manufacturing plant in Huntsville that is undergoing a $106 million equipment modernization.

Several automotive suppliers are either expanding current facilities or building new ones in Alabama. Topre Corporation (Tokyo, Japan) is working on an $80 million expansion of the automotive stamping plant operated by its U.S. subsidiary, Topre America. Mando Corporation (Seongnam, South Korea) is also starting a $10 million equipment addition at the Opelika braking and steering systems plant run by Mando America. New to the state, voestalpine AG (Linz, Austria) is renovating a facility for its Automotive Body Parts division, and Grupo Antolin (Burgos, Spain) is working on an interior components facility in McCalla, both representing nearly $22 million in investments.

Following the developments in Huntsville, BOCAR S.A. de C.V. (Mexico City, Mexico) recently broke ground on a $115 million aluminum structural parts manufacturing facility, putting it in good proximity to the coming Toyota-Mazda plant.

These facilities and ongoing projects have propelled Alabama to sixth in automotive jobs among U.S. states, and the state currently produces 25% of all vehicles built in the South. With its centralized location in a heavily populated and fast-growing region, its proximity to an excellent transportation network and a very business-friendly environment (including very low union participation, supportive governments with tax incentives, and highly competitive utility rates), the state is poised to grow its impact on the automotive industry in the U.S for the coming years.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 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. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.