Kamtek Expands Manufacturing Operations in Alabama
Auto parts supplier Kamtek is investing $530 million in stamping operations and a new aluminum casting facility for lighter parts.
Posted: November 13, 2015
Auto supplier Kamtek | Magna International Inc. (Aurora, ON) recently announced plans to invest $530 million in an expansion of its Birmingham, AL, operation that includes opening a new aluminum casting facility to meet automaker demands for lighter parts. The expansion project in Birmingham will add 354 jobs to its current Alabama workforce of more than 900 employees.
Kamtek primarily produces stamped parts for Mercedes-Benz and other automakers at the Jefferson County facility. They will invest $80 million in the new 148,000 sq ft aluminum casting facility and $450 million to expand the existing operation in the Valley East Industrial Park. “Kamtek’s manufacturing operation here has grown through several expansions over the years, and I am honored that the company has picked Birmingham for another major investment,” said Alabama Governor Robert Bentley. “Not only will this project create 350 new jobs, but it also shows that Alabama remains very attractive to manufacturers and suppliers in the auto industry that are looking for the right place to expand. We look forward to continuing our partnership with them.”
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Greg Canfield, the secretary of the Alabama Department of Commerce, told members of the Birmingham City Council that this expansion is “one of the largest and most significant by an auto supplier in Alabama.” He added that the company’s plans to open an aluminum casting facility to produce lightweight parts reflects an important trend in the industry. “This technology is absolutely critical to automakers,” stated Canfield. “That bodes well for this investment.”
The Birmingham City Council approved the development agreement with Kamtek that allows the project to move forward. Mayor William Bell said this expansion demonstrates that Birmingham — flanked by the Mercedes and Honda assembly plants and home to several major suppliers — is a “major player” in the auto sector. “This means jobs, this means economic opportunities for Birmingham, Jefferson County and the state of Alabama,” remarked Bell at a press conference.
Kamtek general manager John Hackett said the new aluminum casting facility and the expansion of the existing plant “demonstrates our ongoing commitment to our customers,” which include Mercedes, Volkswagen and other automakers. “We are excited to continue our partnership with the local government in creating jobs and positioning ourselves for future business,” he added.
Frank Ervin, the director of government affairs for Magna International, said Kamtek’s current operation in Jefferson County represents investment approaching $473 million. Kamtek originally acquired Ogihara, which opened the facility in 2008 and has re-invested heavily in the operation over the years. It now plans to expand its existing facility by a total of 201,000 sq ft. “Everything is going so good that we decided we would spend a little more money,” Ervin told the city council.
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