Hot United States FDI Sectors: Automotive
Location USA 2012
In Kentucky, for example, economic development tripled in 2010-2011. Vehicle manufacturing led the way, including some large FDI projects. In Louisville, French company Faurecia Interior Systems is investing about $33 million for a plant that will employ 425 workers. Other FDI automotive projects in the state are ZF Steering Systems ($95.8 million, 374 jobs) and Metalsa Structural Products ($25.1 million, 668 jobs). Hitachi Automotive also plans to spend $74.5 million for a plant in Berea to manufacture electric drive motors for next-generation electric and hybrid electric vehicles, creating 130 jobs. The Kentucky Economic Development Finance Authority provided Hitachi with $4 million in tax incentives through the Kentucky Business Investment Program.
Ohio has also been successful in landing foreign automotive projects. Canada-based Vehtek Systems is investing $100 million to expand its facility in Bowling Green. In the southern part of the state, Japan-based USUI International Corporation is constructing a $15.9 million plant in Sharonville to produce tubing for gas direct injection systems. The 120,000-square-foot facility will employ 180 people by 2013. Incentives include an enterprise zone tax benefit and 15-year tax exemption on identified project improvements.
Not all foreign automotive investment is in the Southeast or mid-central United States - locations in the West can still compete. Most recently, thanks to its green focus and high-tech prowess, Los Angeles was recently selected for the headquarters of environmentally friendly Chinese car and battery maker BYD. The move will create about 150 new engineering and management jobs.
South Korea-Based KRA Operations Plans First U.S. Manufacturing Plant in Newberry County, South Carolina