Mazda Toyota Manufacturing, building a $ 1.6 billion automatic plant in Huntsville, announced Thursday that it will increase its investment a year before production is expected to begin.
The Japanese motorists, who came together to form a joint venture in northern Alabama, announced the increased investment of $ 830 million at a virtual event in Huntsville.
That brings the MTM investment to $ 2.311 billion at the sprawling Limestone County facility.
According to a Gov. Kay Ivey said the additional investment will “incorporate new advanced production technologies into its production line and provide improved training for its workgroup of up to 4,000 employees.”
“Toyota’s presence in Alabama continues to build excitement about future opportunities ahead, both for our economy and for the people of our great state,” Ivey said in the announcement. “The increased dedication of Mazda and Toyota to the development of this manufacturing plant reiterates their belief in the future of manufacturing in America and the potential for the state of Alabama to be an economic leader in the wake of unusual economic change. “
The announcement said full-scale construction of the Alabama plant would continue, with 75 to 100 percent completion of roofing, siding, floor slabs, ductwork, fire protection and electrical. Mazda Toyota has also hired about 600 people so far and will hire again later this year.
“Mazda Toyota Manufacturing is proud to call Alabama home,” said Mark Brazeal, Vice President of Administration at MTM, in the announcement. “Through strong support from our state and local partners, we have been able to incorporate latest production technologies, provide world-class training for team members and develop the highest quality production processes. As we prepare for the start of production next year, we look forward to developing our future workforce and living for many years as a business enterprise. “
Brazeal said the additional investment will fund a variety of upgrades to the plant.
“Multiple things, quite honestly,” Brazeal said. “There is not a single thing that costs $ 830 million. Many technological advances to the production line, the production equipment. That’s where a lot of the investment goes. Of course also improved training. Toyota, Mazda, our parent companies, continuously increase the bar of production to produce the highest value, the cars of the highest quality in the sector. That we also need to raise our standards, and of course this has resulted in some extra investment. ”
While acknowledging that the coronavirus pandemic has affected construction and production plans, Brazeal said construction remains on schedule, but did not provide a specific timetable for when production would be expected to begin on the two auto assembly lines. A year ago, prior to the pandemic, plans were announced for the Apollo line to begin in April 2021 and the Discovery line to follow in August 2021. Brazil only requested Thursday that production begin next year – first with the Apollo line, followed by the Discovery line. Mazda Toyota have yet to announce the cars produced at the plant.
“It’s very, very important that we realize the value of what this partnership brings to us today,” said Huntsville Mayor Tommy Battle. “Just in educational taxes, it is $ 4 million extra dollars a year that will come from the extra amount they invest in our community. That’s $ 4 million going to local schools. ”
Battle also joked with Masashi Aihara, president of Mazda Toyota, saying: ‘Looking to the future, remember that we only used 400 acres of that 1200 acres (available for development). That in several years we might be planning to do something different and we will be here again and very happy to be partners with Mazda Toyota Manufacturing in the US. ‘
Updated today, August 13, 2020, at 3:15 PM with brand new information.
