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Indian Automotive Supplier to plan the Development of US$150 Million Tuscaloosa Plant in Birmingham

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Published on : Aug 21, 2015

Indian automotive parts supplier is planning to develop a US$150 million project, Tuscaloosa Plant, in Birmingham. According to Robert Bentley, the governor of Alabama, this project is expected to generate 650 jobs. A 700,000 square foot plant, which is named as SMP Automotive Systems Alabama Inc., is planned by Samvardhana Motherson Group. As per the officials, the construction of this plant is expected to begin from the fourth quarter of 2015. This facility is supposed to source the Mercedes Benz U.S. International plant in Alabama, and Vance. 

Alabama houses three auto manufacturing plans, one engine manufacturing plant, and many other such facilities. Improved quality of auto supplies, skilled workforce, and a positive business atmosphere, has helped the automotive industry in Alabama grow fast. The company is expected to receive credits under the jobs incentive package, ‘Made in Alabama’. The company will qualify for US$22 million during a 10 year share credit, which can be used against utility taxes, and state income. The state has also planned to offer SMP, US$3.5 million, as an assistance from Alabama Industrial Development Training Program. 

People can expect job opportunities from the plant, from its fourth year of set-up. The plant’s payroll, at full staffing, is expected to amount around US$26 million. As per the Alabama Department of Commerce, around 994,000 vehicles were manufactured in 2014. Approximately around US$6.6 billion has been shipped in vehicles. Till July 2015, around 37,900 people from Alabama were employed by the automotive industry players. Corporate headquarter of the company is situated in India whereas the European headquarters is located in Germany. According to the officials, the company, so far, has employed around 70,000 people in 25 countries. With the plan to develop the US$150 million Tuscaloosa plant in Birmingham, the Indian automotive industry is on the verge of growing fast.