German-based Automotive supplier RAPA, Rausch & Pausch LP, will invest $18 million to locate its U.S. headquarters and production facility in Auburn, Alabama, with plans to create 105 new jobs over the next five years.
RAPA produces high-precision automobile parts, including solenoid valves and control blocks. Construction of the facility in Auburn Technology Park West is already underway, with production scheduled to start in fall of 2013.
“We are now an Auburn company,” Chairman of the Board Horst Pausch, Sr., said. “Over time, we want to build a company in Auburn that is independent from Germany, with its own research and development capabilities and its own set of North America-based customers.”
“The automotive industry is one of the business sectors we focus on in Accelerate Alabama, and RAPA fits right in with our long-term economic development plans for Alabama,” Governor Robert Bentley said. “RAPA will soon know what so many other national and international corporate leaders have learned: there’s no better place to do business than Alabama.”
Company officials said they are grateful for the support from Alabama Department of Commerce Secretary Greg Canfield and his department, which allowed the company to realize the foreign venture. Information on whether the firm is eligible for tax incentives was not immediately available.
“The pro-business climate in Alabama was one of the key reasons why we came here. Locally, one could not ask for a better economic development program,” said Dr. Roman Pausch, President of Rausch & Pausch GmbH. “Auburn combines excellent location factors with programs tailored to help small and medium-sized businesses overcome any possible hurdle.”
Auburn Mayor Bill Ham, Jr. said, “We are proud to bring in another dynamic company that will provide Auburn citizens with well-paid jobs, while strengthening our local manufacturing base. It’s exciting that such a unique product, to be sold internationally, will be manufactured in Auburn.”