Toyota locates new plant in state
Jan. 10 Gov. Kay Ivey made the announcement that many Alabamians have been waiting for: a new Toyota-Mazda production plant is set to be located in North Alabama.
The joint venture was first announced in August by the Toyota Motor Corporation and Mazda Motor Corporation, and the search for a location began. It eventually came down to a decision between Alabama and North Carolina, but The Raleigh News & Observer reported that North Carolina was not chosen for the project “because it does not have the supply chain logistics that the car companies want.”
“Alabama has been fortunate to secure economic development projects that I would describe as transformational. They are the kind of projects that certainly change the trajectory not only of communities but of states,” said Greg Canfield, secretary of commerce for Alabama. This plant, Canfield said, is one of those transformational projects.
According to Ivey, the plant will be a $1.6 billion investment that is projected to create 4,000 jobs with an average salary of $50,000. Production should begin in 2021, and the company expects to produce 300,000 vehicles annually.
“That’s what today is about: bringing job opportunities to communities and helping people grow and prosper,” Ivey said.
According to Russellville Mayor David Grissom, in the end this new venture could create around 10,000 jobs in total – jobs which will hopefully reach as far as Franklin County. Supply facilities and other accessory businesses that the plant will need constitute the multiplier effect in this situation, meaning significantly more than just the 4,000 jobs tied directly to the Toyota-Mazda plant.
“It’s a great day for Alabama, especially North Alabama. I’ve already been talking to people about our interest in being a site for suppliers and whatever help we can provide in Franklin County,” Grissom said.
He said Russellville is a central location between the Huntsville area and Toyota’s factory in Mississippi.
This will be Toyota’s fifth factory in North America, but it will be Mazda’s first production plant in the U.S. since 2012. The companies have said that they will be producing Toyota Corollas and a so-far unspecified Mazda model. They hope to “co-develop electric vehicles, safety features and connected-car technologies,” according to al.com.
“Thank you for investing not only in our great state but also in our people,” Ivey said when she addressed Akio Toyota, the president of Toyota Motor Corporation, and Masamichi Kogai, president and CEO of Mazda Motor Corporation at the Wednesday press conference.
