$ 220 million manufacturing plant, 650 jobs ahead in Limestone County for Mazda Toyota

0


The number of jobs to come thanks to Mazda-Toyota is increasing day by day!

The new supplier on site is called YKTA. It is a joint venture of three Japanese auto suppliers who all wanted to participate in the $ 1.6 billion Mazda-Toyota project.

From the Alabama Department of Commerce

FINANCIAL BENEFITS / INCENTIVES OF THE YKTA PROJECT

YKTA is building an auto parts plant in Huntsville that will have 650 full-time employees earning an average annual salary of approximately $ 45,760. The total investment in the project is $ 220 million. All state incentives are tied to the achievement of milestones in the project.

An analysis from the Alabama Department of Commerce estimates the financial benefits of the project over 20 years:

New total payroll: $ 757 million (construction plus permanent jobs)

Total new government revenue: $ 140.7 million

Return on investment to the state: 214%

Under the Alabama Jobs Act, YKTA will receive employment credit and investment credit to facilitate the project, as well as workforce development assistance.

Job credit: estimated value of $ 10,234,583 over 10 years

Investment credit: Estimated value of $ 33,300,000 over 10 years

AIDT, the state’s workforce development agency, has committed to providing services and support worth $ 5,158,000.

Note: Local incentives are separate.

“This investment will create 650 new jobs for more people in Alabama to go to work,” Gov. Kay Ivey said.

Governor Ivey was alongside local leaders and Mazda-Toyota officials on Wednesday to announce YKTA’s move to northern Alabama. Alabama Commerce Secretary Greg Canfield said teaming up with other companies is exactly what this project is about.

“Three great partners and suppliers from Japan gathered in one place, and it stays in the spirit of this joint venture,” Canfield said

Y-Tec, K and Toyotetsu will all work under the name YKTA to build metal structures for the factory. Y-Tec and Keylex are highly regarded suppliers to Mazda, while Toyotetsu works alongside Toyota. Together, YKTA becomes Mazda-Toyota’s second on-site partner and is the largest to date.

In fact, Toyota representatives tell WAAY 31 that they don’t expect a bigger supplier to come. Construction on the new facility will begin this month and WAAY 31 is informed that YKTA will begin hiring production workers in fall 2020.

Now that the third auto supplier is on hold, Governor Ivey wonders who will be next?

“Mazda-Toyota is a great facility. They may need more suppliers, but hopefully they will come. We look forward to having them, ”Governor Ivey said.

Huntsville Mayor Tommy Battle says this is just the start.

“As they come and start producing automobiles, we’ll see more and more of them. More and more jobs, more and more jobs, more economy coming from that,” Battle said.

Governor Ivey announced that the state would expand I-565 near the plant to six lanes. It is one of the first road projects announced to use the gasoline tax. For now, Limestone County Commissioner Jason Black is focused on growth.

“It’s fantastic that we have these level vendors and these new companies, just to add to the benefits that we already have,” said Black.

YKTA is ready to go when the Mazda-Toyota plant begins producing vehicles in 2021. The new company has donated $ 10,000 to the Boys and Girls Club of North Alabama to show its commitment to the community.

The YKTA alliance brings together three successful Japanese suppliers:

• Y-Tec, established in 1945, produces automotive components and designs and manufactures dies, tools and jigs for Japanese automakers, including Toyota.

• Keylex, founded in 1924, specializes in vehicle body parts, produces dies and jigs, and designs and installs production equipment. Its main customer is Mazda and the company operates a joint venture with Y-Tec in Mexico.

• Toyotetsu, founded in 1946, is primarily a supplier to Toyota and has North American operations in Kentucky, Texas, Canada and Mexico. These factories produce structural parts such as pillars, arms and beams as well as functional parts such as pedals.



Source link

Share.

Leave A Reply