1. New Missile Plant Will Employ 300 People in Huntsville
HUNTSVILLE -- Raytheon's decision to build a missile plant on Redstone Arsenal is both recognition of the talent and resources in this area and harbinger of a major new economic base for Alabama, said Gov. Bob Riley.
"More and more people are beginning to recognize what we have there. I think you're going to see Alabama become a part of an aviation/aerospace corridor that is developing all across the Gulf Coast," he said.
"We have the capability today to build another economic foundation in aviation and aerospace very, very similar to what we've developed in the automotive industry," Riley said.
At the Farnborough International Airshow in England, Riley and Dr. Taylor Lawrence, president of Raytheon Missile Systems, announced the company will break ground later this year for a 70,000-square-foot facility on the south end of Redstone Arsenal, at the former Morton Thiokol site. It will employ about 300 people and is to be built in two phases, each tied to production contracts for the Standard Missile-3 and Standard Missile-6.
SM-3 is part of the Missile Defense Agency's sea-based Aegis Ballistic Missile Defense System, deployed on U.S. and allied ships to defend against short- to intermediate-range ballistic missiles. MDA Director Army Lt. Gen. Patrick O'Reilly has said the agency is considering a land-based version of the SM-3 and would locate that project office in Huntsville.
SM-6, also known as the Extended Range Active Missile, is being developed for the Navy to use against fixed- and rotary-wing aircraft, unmanned aerial vehicles and anti-ship cruise missiles in flight, both over sea and land.
"This is a great day for Huntsville," said Mayor Tommy Battle on Monday, adding that the plant should also benefit other Tennessee Valley communities.
The area is well known for what he called "laptop" work: software development, research, engineering and the like. The Raytheon plant will bring more highly-trained manufacturing positions.
The Alabama Development Office has been the lead agency for this deal, working with Raytheon and federal officials about leasing the site on Redstone Arsenal, Battle said.
Hiring is expected to begin sometime next year. Hilson said Alabama Industrial Development Training will be providing recruitment screening and pre-employment training.
Raytheon already employs nearly 700 in the Huntsville area. According to the project agreement with the state, the average annual base wage for the new plant's workers will be $60,000.
2. Alabama Wins Hyundai Heavy Industries, More than 480 New Jobs
MONTGOMERY – Governor Bob Riley and officials from the Montgomery area announced that Korean-based Hyundai Heavy Industries will locate its first American manufacturing facility in Montgomery, creating what was believed to be 480 new jobs and a capital investment of $90 million. It was later learned more than 500 jobs will actually be created.
The facility will be located on 100 acres at Interstate Industrial Park, located off I-65 at U.S. 31, and will manufacture large power transformers. The HHI facility in Montgomery will be known as Hyundai Electrical Systems Alabama, Inc. A groundbreaking is expected to take place later this month, with construction complete by the end of 2011, and production beginning in early 2012.
"We're seeing positive signs that our economy is rebounding, and this announcement of almost 500 new jobs is certainly one of those signs," said Governor Riley. "When you combine Alabama's outstanding workforce with the great economic development team we have at the state and local levels, you're able to recruit world-class companies like Hyundai Heavy Industries. This truly is a team effort, and our Alabama team is proud to welcome HHI."
Montgomery is riding a wave of good economic news, with last Friday's announcement following the recent recruitment of two new corporate headquarters operations and more than 120 jobs to the capital city, ”We are on a roll in Montgomery, and our economic development team has hit a homerun again with this announcement," said Montgomery County Commission Chairman Elton Dean. "This is a win for HHI, and a win for the Montgomery area. Those 480 new jobs will mean so much to our community."
"This is great news for the River Region and the entire state of Alabama. The team effort we made nearly 10 years ago to attract Hyundai Motors to Montgomery continues to pay dividends," said Congressman Bobby Bright (D) who was formerly the mayor of Montgomery. "Hyundai Heavy Industries' decision further diversifies the River Region's manufacturing economy and will provide new jobs and opportunities for the hardworking people of Alabama. Hyundai, its subsidiaries, and suppliers continued investment in our state underscores the need to expand our trade relationship with South Korea. The relationship between our two great countries is already strong, but could be even stronger and mutually beneficial if we remove unnecessary restrictions on trade. Today, however, is a day to celebrate a positive step for the Montgomery area's economy."
Founded in 1972, Hyundai Heavy Industries (HHI) is a global business network operating in six business divisions: Shipbuilding, Offshore and Engineering, Industrial Plant and Engineering, Engine and Machinery, Construction Equipment and Electro Electric Systems.
Montgomery was a finalist among several cities in four southern states. The state, county and city worked together to provide a competitive incentive package for the company, and it was that spirit of cooperation and collaboration which ultimately put Montgomery over the top. Montgomery Mayor Todd Strange reached out to the city of Prattville, Elmore County and the City of Greenville and asked for their commitment and investment.
3. New Steel Mill To Bring 120 Jobs to Thomasville
THOMASVILLE -- Proximity to new steel mills and customers drew Lakeside Steel Inc. to look at sites in Alabama and neighboring states, but officials said Thomasville's aggressively friendly courtship sealed the deal for a new steel pipe mill in this Clarke County town. Lakeside officially announced Thursday that it would spend $21.2 million to build a plant and buy equipment, and spend another $17.4 million to buy steel and stock the 120-job facility. Production is expected to begin by November 2011.
The Canadian firm is likely to be followed by several suppliers, companies that would process steel and finished piped, Lakeside Chief Executive Officer Ron Bedard said, creating as many as 60 to 80 more jobs. Lakeside's workers will make $15 to $17 an hour, with added production bonuses, said Thomasville Mayor Sheldon Day.
4. TK Receives First Coil Shipment
CAVLERT- The first stainless coils from the ThyssenKrupp facility in Germany arrived in Calvert last Friday. TK officials say it's just the beginning. The steel coils arrived at the Alabama State Docks last month all the way from Germany. Friday, 36 steel coils were delivered to the ThyssenKrupp Plant.
Officials described the delivery as a live test of how well its supply train for raw materials works.TK officials said the next phase is showing promise too.
“We are ramping up the melt shop and should be ready by 2012, 2013. First piece of equipment coming on Monday,” said Oliver Baum, with ThyssenKrupp. Once the melt shop is up and running, these coils will be produced on sight.
However, these steel coils have one purpose. "Semi-finished product cut into bars used in commission of melt shop," shared Baum. The next shipment of coils from ThyssenKrupp Stainless in Germany has already set sail. It is due to arrive in the Port of Mobile around August 12.
5. Birmingham Ranks High for Export Growth
The Birmingham area ranks No. 13 for annual export growth among the nation's top 100 metros, according to a new report that underscores the importance of exports when it comes to aiding economic recovery.
From 2003 to 2008, metro Birmingham's exports grew 15.1 percent annually, the Brookings Institution study says. Long a steelmaking center, the area's major export industry is primary metal manufacturing.
The value of Birmingham area exports in 2008 was $4.3 billion, ranking the metro at No. 59 nationally. Exports also support 35,665 jobs in the area.
New York ranks No. 1 for the value of 2008 exports, at $85 billion. Los Angeles, Chicago, Houston and Dallas round out the top five.
According to the study released today, metro areas produce nearly two-thirds of the nation's exports, putting them in the best position to drive export growth and create jobs. The report recommends that federal and state governments empower metros for export production and that metros innovate to increase export capacities.
"True economic recovery and job growth in America will depend on substantial growth in the amount of goods and services we sell to other nations," Bruce Katz, vice president and director of the Metropolitan Policy Program at the Brookings Institution, said in a prepared statement. "Metropolitan areas already lead the nation in export production, and they will be the vanguard of export growth in years to come."
6. Mercedes Plant Lures Two More German Firms
The Mercedes-Benz automotive plant in Vance has attracted two more German companies to Alabama -- and both have growth aspirations beyond the automotive sector.
BLG Logistics Inc. is growing from the parts and sequencing operation it now has inside the Mercedes plant to a new logistics center in half of a 120,000-square-foot building now under construction next to the plant. BLG also has established a Birmingham office in the World Business Center atop Red Mountain with plans to go after distribution and logistics business with other companies -- particularly those in electronics and some consumer products. BLG's neighbor in the World Business Center is WFB, the German abbreviation of what translates into Bremen Economic Development in English and will likely go by the name Bremen Invest in the U.S. The firm will promote trade and investment between companies in the two countries. Bremen Invest has tapped Kirk Atkinson as its U.S. director. Atkinson once worked with the Economic Development Partnership of Alabama before moving to Germany.
"The No. 1 reason for our office here is to support Alabama industry to do business internationally and to support German industry here, particularly those with a connection to Bremen, like BLG," Atkinson said.
Steve Markham, president of BLG Logistics' U.S. operations, said the company has 50 employees supporting the Vance plant, which BLG has done since 2004. While applications for incentives say the company will add 30 jobs with the expansion, the real number could be closer to 100 if BLG's growth plans are realized. "We see a lot more than (30) coming," he said. "The goal is to double or triple our work force locally. It doesn't have to all be automotive." He said the company is sizing up opportunities represented by the $112 million cargo terminal planned by Norfolk Southern in McCalla.
For now, the focus is on opening the facility next to the Mercedes plant by November. BLK has 60,000 square feet leased with the option on the remainder and 200,000 square feet could be added in the future.
WFB, which is setting up Bremen Invest in Birmingham, has ties to BLG, which has operated in the German city since 1877. "We say Bremen is a Daimler city," said Andreas Gerber, director of international affairs for WFB, referring to Mercedes' parent company. "Daimler is the biggest and most important company in Bremen with a work force of more than 13,500 people."
Bremen is home to the Mercedes plant that produces the CLK, SLK, SL and C-Class sports sedans for Europe. "That's the link between Tuscaloosa, Alabama, and us," said Gerber, who toured Alabama last week. "You will produce the C-Class for the American market while we produce the C-Class for the European market."
WFB and Bremen Invest have ties to Airbus and parent EADS, which is competing for a $35 billion Air Force tanker contract. EADS has said it will produce the refueling tanker in Mobile, should it beat Boeing for the work.
7. Small Huntsville Company Developing “Eyes” and “Brains” for Soldiers
HUNTSVILLE -- There are eyes and brains on the table at Advanced Optical Systems, next to a big metal hand with a powerful grip. The rugged little cameras, black boxes of bristling circuit boards, LED beacons and the automatic cargo hook assembly housed in what looks like a desktop beer keg are part of the company's Hermes autonomous pickup and delivery system.
"A lot of the things that we do are image processing," said Joel Hannah, electrical and software engineering manager for AOS. "Our company motto has been 'We develop systems that see, understand and act.' "
Hermes - named for the messenger-delivery person to the gods in Greek mythology - is a good example. The system ties in to a helicopter's avionics, GPS navigation and other systems to automatically direct the aircraft over a load prepared for a pickup - let's say medical supplies, ammunition or parts needed to be moved by soldiers in the field.
The system's sensors make sure they're looking at the correct load, and then maneuver the hovering helicopter through the process of lowering and precisely positioning the automatic cargo hook in a kind of docking procedure.
AOS has developed similar autonomous rendezvous and docking technology for NASA and for air-to-air refueling, said Dr. Richard Hartman, chairman and CEO. He is a former director of research for the Army Missile Command, a forerunner of today's Aviation and Missile Command, and he founded AOS in 1988 with two other men who have since left the company.
After picking up the slung load - the autonomous hook is rated for more than 1,000 pounds - Hermes directs the helicopter to the delivery point and does the same thing to lower and release the supplies, again using precision GPS, beacons and other technology.
The system is scalable and can simply assist pilots picking up cargo or can be fully autonomous, working aboard unmanned rotorcraft to completely take Marines or soldiers out of harm's way in a supply operation.
A fully-unmanned helicopter pickup and delivery using Hermes was demonstrated recently as part of the Army's Advanced Science and Technology Directorate's Family of Unmanned Systems Experiment. On Friday, the Army sent word that AOS would receive funding for the next round of Hermes development and testing, Hannah said.
8. Redstone Arsenal Gets $1 Billion Boost
Construction on the $10 billion Redstone Gateway Office Park is expected to begin in early November.
Plans call for 52 large office buildings holding as many as 15,000 government workers and defense contractors, two hotels, multiple restaurants, an academic campus and outdoor concert venue.
Under a development agreement approved in March, the city will borrow money for the infrastructure work from LW Redstone. Huntsville will repay the company over time, with 9.95 percent interest, using property taxes generated by the office park.
9. Cullman Company Expanding in Alabama
CULLMAN — Due to an unexpected increase in business, valve manufacturer Cash Acme is expanding some operations from its Cullman location to a new plant elsewhere in the state. Representative Heath Sharp said the Australia-based business is planning to open a second facility in Alabama, though the Cullman plant will continue to be an integral part of the company’s future plans.
“Our existing Cullman facility will remain the core manufacturing facility, and we will still distribute a significant amount from here,” Sharp said via e-mail. “Our plans for the Cullman facility are not greatly changed from what they were back when we opened the new warehouse in September last year.”
Sharp did not say where the new facility will be located, and messages left seeking additional information were not returned by press time. It is unknown how many local positions may be transferred to the new facility, though Sharp did say no significant job losses are expected at the Cullman location. Cash Acme employs approximately 125 people, according to the most recent Cullman Economic Development Agency estimates.
“In terms of employee numbers, we fully expect to end the year with higher numbers than when we started, regardless of the additional warehouse and distribution facility mentioned above,” Sharp said. “So, the Cullman facility will retain its dominant position within our North American business.”
Over the past year, Sharp said Cash Acme has seen a huge increase in product demand — which makes the need for additional space more pressing than ever.
“What has changed since then is that we gained additional business, the extent of which was not obvious at the time,” Sharp said. “This new business is placing ever increasing demands on physical space. We now require significant extra space to house and distribute this particular product group.”
Cullman Economic Development Director Peggy Smith said her office spent months searching to no avail for a space large enough to meet the needs of Cash Acme in Cullman County. “They’ve looked at every building available in this county, and all of the industrial entities have worked very hard to try and resolve this,” Smith said. “It isn’t just about having a building, but about having a building that meets their specific needs. We’re obviously disappointed we didn’t have an existing building to fit them, but when you’re talking about a facility that large, it’s good news and bad news. It’s a good thing we don’t have something that big sitting idle, but it’s bad that we didn’t have something here for them to expand into immediately.”
With no local facility to meet the company’s needs, Sharp said Cash Acme began looking to nearby areas for a place to expand. “The current demands mean we have an immediate need — there is no time to build a new facility,” he said. “Unfortunately there are no buildings in Cullman nearly large enough to do this. So we are forced to locate an appropriate facility elsewhere, but as close as possible to Cullman.”
10. Demopolis Gets $25 Million Chip Mill
RockTenn is building a $25 million chip mill adjacent to its paper mill in Demopolis. Site preparation is under way now, and some production equipment has just started to arrive, said Carl Wright, vice president and general manager of RockTenn’s Demopolis operation.
The new chip mill is expected to begin production in March 2011 and should result in the hiring of an additional 16 workers, Wright said. About 200 contractor employees will be involved in the mill’s construction.
RockTenn has about 510 employees in the Demopolis area and is one of Marengo County’s largest employers.
Chip mills are an important part in the production of pulp and paper. At the chip mill, logs have their bark removed. The stripped logs then are fed into chipper machines that quickly reduce the logs into small chips.