German Auto Parts Supplier to Open First Factory in US

work-711708_960_720One of Germany’s leading auto suppliers has announced plans to build its first North American manufacturing plant. Gerhardi Kuntstofftechnik made the announcement earlier this week, saying it plans to invest nearly $40 million into building a manufacturing facility in Montgomery, Alabama.

News of the company’s decision to construct a new manufacturing facility in the U.S. is good news, as many companies have taken the opposite approach: closing their facilities in the U.S. and moving their operations to other countries. But the U.S. is encouraging companies to bring their business here, offering tax incentives and other perks to further strengthen the manufacturing industry, and subsequently, the U.S. economy.

The new Gerhardi Kuntstofftechnik facility is expected to employ some 235 workers once complete, bringing an influx of new jobs and capital to the city of Montgomery and state of Alabama. Job numbers have rebounded in recent years, not just in Alabama but throughout much of the U.S. This new factory will further strengthen the job market by employing 235 workers.

In a statement to the press, Alabama Governor Robert Bentley said his state is the perfect choice for Gerhardi Kuntstofftechnik, as it’s paving the way for the automotive and aerospace industries.

Alabama’s leading advanced industry is the automotive industry, and it’s closely followed by the aerospace industry which has grown tremendously thanks to Alabama’s involvement in the Farnborough Airshow this week and others in previous years,” said Gov. Robert Bentley in a statement to the press. “This week while I’m continuing Alabama’s aerospace mission in London, I’m honored to welcome Gerhardi’s first U.S. automotive supplier plant to Montgomery.”

Gerhardi Kuntstofftechnik isn’t a new company by any means. In fact, it’s been around for centuries now. The company was founded back in the late 1700s, during which it focused primarily on manufacturing brass and copper buckles. Gerhardi Kuntstofftechnik has since shifted its focus towards manufacturing both interior and exterior automobile parts for automakers across the world.

When announcing its upcoming factory, Gerhardi Managing Director Reinhard Hoffman said Montgomery offers a “great infrastructure, attractive support and is located close to many OEMs (original equipment manufacturers).” Hoffman and other Gerhardi executives were jointed with Alabama state leaders during the ceremony.

Construction on Gerhardi Kuntstofftechnik’s new manufacturing facility is scheduled to begin in 2017, with plans of it being operational in 2019.

What do you think of Gerhardi Kuntstofftechnik’s decision to open a new manufacturing facility in Alabama?

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