Dr. Schneider Automotive to Create 155 Jobs at New Manufacturing Operation in Russell Springs
8/9/2013 12:02:00 PM
Germany-based automotive supplier to invest more than $29 million in Kentucky; Russell Springs beat 69 potential locations to win new plant
FRANKFORT, Ky.-- Governor Steve Beshear today announced Dr. Schneider Automotive Systems Inc., a Germany-based automotive supplier, plans to establish a manufacturing operation in Russell Springs. The new plant will create 155 full-time jobs and entail a more than $29 million investment in Kentucky.
The announcement marks the third German-owned company to locate a new operation in Kentucky this year, all three of which serve the auto industry.
"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. 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."
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."
Kentucky has experienced tremendous success in foreign direct investment growth, adding nearly 100 new facilities over the past decade. In 2012, nearly 35 percent of all capital investment and almost 20 percent of new jobs announced in the manufacturing, service and technology sector were a result of foreign-owned companies. Kentucky maintains economic development offices in Hamburg, Germany and Tokyo, Japan, which work to cultivate new and existing relationships abroad for the Commonwealth.
The location of Dr. Schneider also further strengthens Kentucky's auto industry, which today boasts over 450 motor vehicle-related facilities across the state. Just last year, Kentucky's auto production numbers topped one million vehicles, the highest in five years. Year-to-date 2013, Kentucky ranks third in light vehicle production in the United States and first on a per capita basis.
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.
For more information on Dr. Schneider, visit www.dr-schneider.com/en/. To apply for jobs call or visit your local Kentucky Career Center, or for inquiries and requests for applications send an email to email@example.com.
Information on Kentucky's economic development efforts and programs is available at www.ThinkKentucky.com. Fans of the Cabinet for Economic Development can also join the discussion on Facebook or follow on Twitter. Watch the Cabinet's "This is My Kentucky" video on YouTube.
A detailed community profile for Russell Springs (Russell County) can be viewed here.