ThyssenKrupp Materials North America (TKMNA), a division of the materials giant ThyssenKrupp, is investing $13m to build a new materials processing and distribution centre in Woodstock, Alabama. The centre will serve the Coil Processing Group division.
A spokesman for the company said the decision to locate the new processing and distribution centre in Woodstock was because a demand for localised support from a growing number of customers, including OEMs, with facilities there and in the surrounding states.
“Time and again they have been clear that they want just-in-time (JIT) processing and delivery, so our goal with this project is to enhance the supply chain by being in close proximity to the customers,” he said. “It also reflects the fact that Alabama is growing; business is picking up and the OEMs have been doing well.”
As well as processing a full range of metals to the automotive industry (amongst others), it provides procurement, storage and material delivery services, through Thyssenkrupp’s TKX Logistics arm, an asset-owning lead logistics provider for the company, which also supports supply chain management, transport and logistics services. Transport services include truckload (flatbed and van), flatbed LTL, inter-modal services, rail, barge, expedited freight and just-in-time. As well as its own dedicated fleet, TKX Logistics uses more than 3,000 contract carriers providing full door-to-door services throughout Canada and Mexico.
TKMNA also provides production outsourcing support.
The company would not talk about specific customers but Alabama is growing as centre of automotive production, with Daimler, Honda, Hyundai and Toyota all having plants and suppliers there. BMW’s Spartanburg plant is in neighbouring South Carolina.
“There has been a substantial growth in sales and it is about being there and providing materials JIT and just-in-sequence,” said the spokesman.
Construction of the new 10,000-square-metre facility is scheduled to begin this month and recruitment will begin in early 2013 for positions in machine operations, material handling, logistics, sales and administration.
The centre will be fully equipped with cranes and four lines for processing materials such as carbon steel, aluminum and stainless steel. The end products will be distributed to various Ken-Mac Metals and ThyssenKrupp Steel Services customers, including manufacturers of automobiles, heavy trucks and truck trailers, as well as HVAC and other suppliers.
The company said the plant can be expanded by an additional 150,000 square feet, taking into account the potential for future infrastructure improvements.
“The decision to locate our Coil Processing Group’s newest processing and distribution center in Alabama reflects the economic vitality and extensive opportunities that exist in the Southern United States,” said Hans-Josef Hoss, president and CEO of TKMNA.
Hoss expressed his appreciation to both state and county officials who provided the company with an incentive package that included funds contingent on jobs created, as well as infrastructure development assistance to allow road and rail access to the facility.
TKMNA has 95 locations in US, Canada and Mexico and is one of the leading providers of production materials and integrated services for North America, reporting an annual turnover of $3.2 billion.