Southern Auto Corridor News

QUIZ

In calendar year 2003, there were 305 announcements in the South made by companies that plan to hire 200 or more workers. Of those 305 significant job-making announcements, how many came from the manufacturing sector? (a) 93; (b) 46; (c) 72; (d) 145

(Scroll down for answer)

Japanese Manufacturer May Open Truck Plant in Arkansas

Hino Motors Ltd., Toyota's Japanese truck manufacturing partner, announced in late May it may add a truck assembly plant to its recently announced parts plant in Marion, Ark. The company announced a parts plant in early May on a 160-acre site in Marion, which is located across the Mississippi River from Memphis, Tenn. Hino is a parts supplier to Toyota and produces its own line of medium and heavy trucks. Toyota owns 50.1 percent of Hino.

Honda Dedicates Alabama Facility

Honda's second production line at its plant in Lincoln, Ala. was officially dedicated in May. The second line produced the first Alabama built Honda Pilot SUV on April 17. The new line increases production at the plant to 300,000 vehicles a year. It was four years ago that Honda announced it would build an assembly plant in Alabama. Today, the plant houses 3,300 employees with an additional 1,000 to be added by early 2005.

International Joint Venture Dedicates Georgia Plant

Perkins Shibaura Engines, a joint venture between Perkins Engines, a Caterpillar company Japanese small engine maker Ishikawajima Shibaura Machinery, dedicated its new small engine plant in Griffin, Ga. recently. Production at the Griffin plant is expected to produce as many as 60,000 2, 3 and 4 cylinder, liquid-cooled, turbo-charged engines annually.

EPA Designation Hurts Marion's Toyota Chances

Just last month we received information that indicated Toyota officials were on the verge of choosing Marion, Ark. for a truck and SUV plant, possibly as early as this summer. But in April the Environmental Protection Agency cited Crittenden County, Ark., located just across the river from Memphis, as well as Shelby County, where most of Memphis' population resides, as failing federal air quality standards. For now, that's a huge blow to Marion's chances at landing a Toyota plant.

But all may not be lost. There are apparently loopholes in EPA's air quality standards. Toyota officials said in the Arkansas Democrat-Gazette on April 21 that the Japanese automaker has never chosen a non-attainment site for an assembly plant. But that's not exactly true.

Also in April, the EPA designated 23 Texas counties, including three in the San Antonio area, as being in violation of federal air quality standards. One of those counties is Bexar, where Toyota is building a pickup truck assembly plant.

So, what's the difference? Bexar and two other San Antonio counties have voluntarily initiated Early Action Compacts with the EPA. The compacts are simple outlines and measures that the counties will have to undertake to meet air quality standards. As long as those measures and commitments are met, non-attainment status will be deferred.

Viscotec Investing in North Carolina

Viscotec Automotive Products, a maker of fabrics for car and truck interiors, is spending $20 million to expand its Morganton, N.C. facility. The expansion will create 140 new jobs.

Fukoku Adding Jobs in South Carolina

Fukoku South Carolina is adding positions at its parts plant in Laurens County, S.C. The Japanese parts supplier is adding 50 jobs and investing $7 million in its rubber products facility in Laurens.

German Supplier Opening New Plant in Kentucky

German sunroof manufacturer Webasto Roof Systems, will open a new facility in Murray, Ky. this summer. The new $14 million plant will house 150 workers when operational.

Exedy America Expands in Knoxville

Exedy America Corp., formerly Daikin Drivetrain Components, is adding 86,000 square feet to its existing facility in Eastbridge Business Park in Knoxville. The company, a world-class producer of torque converters for the U.S. automotive industry, will invest $56 million in the expansion and create nearly 200 new jobs.

Systex Building New Facility in Osceola, Ark.

Systex Products Corp. announced in late April it will build a facility in Osceola, Ark. to produce plastic injection molding parts for automobile HVAC systems produced by DENSO Corp. DENSO's new facility in Osceola is nearing completion. DENSO will make car air conditioners and radiators when that plant opens. Systex is headquartered in Michigan and is expected to hire 40 workers for the new plant.

Johnson Controls Closing Parts Plant in Kentucky

You won't find but a handful of automotive suppliers closing plants in the Southern Auto Corridor. In fact, in the last quarter we couldn't find a single one (see Closures and Layoffs under Departments on the main page of www.SouthernAutoCorridor.com). But Johnson Controls is moving its visor production work from plants in Michigan and Glasgow, Ky., to a facility in Ramos Arizpe, Mexico. JC will phase out production over 18 months. In Michigan, nearly 1,000 workers will lose there jobs and 185 in Kentucky.

Japanese Supplier Expands in North Carolina

NGK Ceramics, a subsidiary of NGK Insulators of Nagoya, Japan, is adding 100 workers at its plant in Mooresville, N.C. The parts supplier makes catalytic converters for the auto and truck industry. Additional production lines are being added in the $32 million expansion.

Bus Manufacturer Adding Workers in N.C.

Thomas Built Buses is adding to its work force in High Point, N.C. The company is adding about 100 workers to its existing 1,600-employee base in order to increase production. Thomas Built Buses is a subsidiary of Freightliner LLC and its the largest producer of school buses in the U.S.

German Supplier Building Plant in N.C.

ZF Lemforder Corp., a supplier of chassis and driveline technology, announced in April it is building a plant in Newton, N.C. The new facility is expected to house 200 workers with an investment of $30 million. ZF is a subsidiary of ZF Friedrichshafen AG, a German-based parts supplier that operates plants in 25 countries.

Freightliner Adding 65 Workers in S.C.

Freightliner is adding 65 employees at its chassis plant in Gaffney, S.C. The Oregon-based truck manufacturer makes chassis for buses, vans and motor homes at the facility. The company currently employs 900 workers at the Gaffney plant.

Toyota Exec Says 10 Tier-Ones Going to San Antonio

Hidehiko Tajima, President of Toyota Motor Manufacturing of Texas, announced in April that at least 10 Tier-one parts suppliers will make the San Antonio area home within the next two years. Several of those Tier-ones are expected to build on property Toyota owns, where it is building a 2,000-employee pickup truck assembly plant.

Acres Sold Near SA Toyota Plant

A California-based real estate developer has purchased 522 acres directly across the street from the new Toyota truck plant being built in San Antonio. Los Angeles-based Holly Hill Development plans to develop the property into two industrial parks.

French Supplier Investing in Rural Mississippi

Faurecia, a French auto parts supplier, has chosen rural Cleveland, Miss. for a new manufacturing plant. The company makes seats, doors, front ends and other parts for the auto industry. The plant in the Mississippi Delta will produce seating components. The deal will result in 250 jobs with an investment of $12 million.

Toyota Expanding West Virginia Plant

Toyota West Virginia is expanding its gear and transmission plant in Buffalo, W.V. Toyota will invest $80 million in the deal and increase its employment at the plant from 950 workers to 1,000. The Japanese automaker will add 185,000 square feet to its existing facility.

Porsche Carrera GTs to be shipped Through Georgia Ports

German automaker Porsche currently ships about 10,000 high-performance vehicles through Georgia's two primary ports each year. Now the automaker's most exotic vehicle will be shipped through those same ports. Porsche officials said in April they would ship about 600 Carrera GTs to be processed at Savannah and Brunswick over the next three years.

Ford Continues Two Shifts in St. Louis

We reported in the winter quarter that Ford would cut its Hazelwood assembly plant from two shift to one by April of this year. Now Ford officials maintain they are going to keep the St. Louis plant on a two-shift schedule until further notice. Ford Explorers are made at the factory. Ford has seen an increase in Explorer sales in 2003 and the first quarter of 2004.

Nissan Takes Space in Tennessee

Nissan has signed a deal to lease an additional 200,000 square feet of space in Smyrna, Tenn., where it operates one of the South's largest auto assembly plants. The Japanese automaker already leases about 500,000 square feet offsite of its plant in Smyrna. Nissan officials have not disclosed what they intend to do with the space.

Japanese Parts Supplier Expands in Northeast Tennessee

Otics USA is investing $25 million at its parts plant in Morristown, Tenn. The Japanese company, which supplies engine parts for Toyota, will increase the size of its plant by 80,000 square feet and add 80 new employees.

Tire Distributor Leases 600,000 Square Feet Near Birmingham

TNT Logistics, a distributor of Michelin tires, has leased 600,000 square feet in Moody, Ala. near Birmingham. The company is investing $15 million in the deal, which will create 75 jobs.

Suppliers Expand in Auburn, Ala.

Hoerbiger Drivetech USA and Hoerbiger Hydraulics are expanding their facilities in the east Alabama market of Auburn. Both companies are German-based. Hoerbiger Drivetech makes clutch plates and Hoerbiger Hydraulics assembles hydraulic systems for BMW, Ferrari, Volkswagen and Daimler/Chrysler. The two expansions will result in 50 additional jobs.

School Bus Plant Expands in Arkansas

A manufacturer of school buses is adding 78 workers in Conway, Ark. IC Corp., which employs 1,200 workers, is investing $9 million to upgrade equipment to prepare for a new bus model, the Conventional CE. IC Corp. is a subsidiary of Illinois-based International Truck and Engine Corp. IC and its predecessors Ward Bus and American Transportation, have been manufacturing school buses in Conway since 1933.

Great Dane Adds Second Shift in Arkansas

Savannah, Ga.-based Great Dane LP, a maker of a variety of trailers, is hiring 175 new workers and adding a second shift at its plant in Jonesboro, Ark. The additional employees will bring employment at the northeast Arkansas plant to over 400. Great Dane operates nine manufacturing plants in the U.S.

Hyundai Supplier Lands in Georgiana, Ala.

South Korea's Auto Electronic America Corp, a Tier-two supplier to Hyundai's assembly facility in Montgomery, has picked Georgiana for its first U.S. plant. The supplier will make racks, conveyors and carts for Hyundai as well as its Tier-one suppliers. The company is expected to invest $1 million in the deal and employ about 50 workers.

Two More Hyundai Suppliers Choose Tallasee, Ala.

A second and third supplier to Hyundai's Montgomery, Ala. plant has chosen to locate in the city of Tallassee's Industrial Park. A subsidiary of South Korea-based Sung Won Elec-Comm Corp., will produce electronic panels and communication systems for Tier-one suppliers to Hyundai. And Seoil America will make sealants and coatings for Hyundai.

Hyundai Supplier Lands in Selma, Ala.

Renosol Corp., a maker of molded automotive seating parts, announced recently it is moving into a 50,000-square-foot building at Selma's Craig Field Industrial Park. The company will supply Hyundai and 120 workers are expected to be housed at the facility.

ISE Opens Plant in Tuscaloosa

ISE Innomotive Systems opened its $32 million manufacturing and North American headquarters in Tuscaloosa in April. The plant will produce front and rear modules for Mercedes-Benz and will employ 120 workers. By serving as ISE's headquarters, customers and vendors to the company will have to make their way to Tuscaloosa and the 200,000-square-foot facility. That certainly is a different twist compared to virtually all supplier operations.

ORIS Opens Alabama Facility

ORIS Automotive, a supplier of automotive exterior components and accessories, opened its new $10 million, 115,000-square-foot North American headquarters and manufacturing complex in Bessemer, Ala. on April 15. ORIS is a supplier to the Mercedes-Benz plant in Vance, Ala. In addition to Mercedes, ORIS' customers include Toyota, Volkswagen, GM and Ford.

Canadian Supplier Opening Facility in Huntsville

Mitchell Plastics, a subsidiary of Canadian-based Ultra Manufacturing, will open its first U.S. facility in Huntsville, Ala. this summer. The company, which produces injection-molded plastic parts to the auto industry, will create about 65 jobs. The company has two other plants in Ontario and a sales office in Troy, Mich.

Ford Investing in Kentucky Plant

Ford Motor Co. is investing $73 million at its stamping plant in Louisville. The company is adding 95,000 square feet in an effort to produce more truck parts for plants in Louisville.

QUIZ ANSWER

The manufacturing sector has gotten a bad rap of late. In fact, you may have been convinced by various media outlets that manufacturing is a dead industry in the U.S. Sure, some manufacturing industry sectors are dead, but some are thriving, especially here in the American South. Of the 305 significant deals (200 jobs or more) announced by companies in the South in calendar year 2003, 145 (d) came from the manufacturing sector and 35 of those came from the automotive sector. The 145 manufacturing deals represent 48 percent of the largest job announcements made in the South in 2003.