Dr. Schneider Automotive Systems To Invest More Than $29 Million In Russell Springs, Kentucky, Manufacturing Plant
Area Development Online News Desk (08/09/2013)
Dr. Schneider Automotive Systems Inc., a Germany-based automotive supplier, plans to establish a manufacturing operation in Russell Springs, Kentucky. The new plant will create 155 full-time jobs and entail a more than $29 million investment.
The 85-year-old family enterprise is a pioneer in the processing of plastics and produces high-end vent and trim systems for top automotive original equipment manufacturers around the world. To meet increasing customer demand, the company is looking to establish its wholly-owned U.S. subsidiary in Russell Springs, where the plant will manufacture parts for companies such as Ford, GM, BMW, Mercedes, Volkswagen and more.
“At the end of an intensive selection process where we checked 69 locations, we decided to choose Russell Springs,” said Wilhelm Wirth, member of the Dr. Schneider board of directors. “The decisive factors included the quality and expandability of the facility and the competitive location costs. The professional cooperation with the local and state business development departments confirmed our decision as well. We are convinced that at this location we will be able to work more efficiently for our current customers, including Mercedes, BMW and Ford, and that we can win new partners.”
“Dr. Schneider Automotive Systems will only add to Kentucky’s thriving automotive industry and foreign direct investment, which are both vital components of our growing economy,” said Gov. Steve Beshear. “We welcome Dr. Schneider to Russell Springs, and are excited to see 155 new jobs and an investment of more than $29 million in the Commonwealth.”
“I’m pleased that Dr. Schneider Automotive Systems picked Russell County and Kentucky for their wholly-owned manufacturing plant in the United States, and I congratulate Sec. Larry Hayes and the Russell County Industrial Authority for their hard work in getting Schneider Automotive Systems to locate in Russell County,” said Rep. Jeff Hoover, of Jamestown. “Not only is their decision a reflection of Kentucky’s stature as an automotive manufacturing hub, but also speaks to the available qualified workforce that Russell and surrounding counties offer to companies looking to locate in our region.”
To encourage the investment and job creation in Russell Springs, the Kentucky Economic Development Finance Authority preliminarily approved the company for tax incentives up to $4 million through the Kentucky Business Investment program. The performance-based incentive allows a company to keep a portion of its investment over the term of the agreement through corporate income tax credits and wage assessments by meeting job and investment targets.