German auto supplier investing $38 million in US

A German auto parts molder and electroplater is on track to build its first North American production plant in Montgomery, Ala.

Gerhardi Kunststofftechnik GmbH will invest $38 million in the project and is due to start construction by the end of 2016, according to Fredy Franke, the new CEO of the U.S. operation.

“Our main customers want us to be available not only in Europe but also on other continents,” Franke said in a Nov. 23 phone interview from Gerhardi's head office in Lüdenscheid, Germany. “The United States is our next big footprint.”

Franke said automaker customers like BMW, Mercedes-Benz and Audi are locating assembly plants in North America.

Gerhardi expects production in Montgomery to begin by the end of 2018. Franke said his firm will install injection molding presses with clamping forces ranging from 350 to 1,500 tons, plus electroplating equipment to make and assemble auto optical components and trim for interior and exterior applications. Radiator grilles, handles and chrome trim are examples of what Gerhardi has been making in Germany for global OEMs.

Proximity to customers was a big reason Montgomery was chosen after a detailed site-selection process involving about 10 locations in the Southeast United States. Local infrastructure and transportation connections also figured in the decision. Interstate 85 is nearby.

Gerhardi is building a 96,000-square-foot facility that eventually will employ about 240. Gerhardi Inc. is the name of the new operation, Franke said. Company officials and government leaders broke ground on the facility in July. Incentives include a 20-year tax abatement and a deep discount on a 50-acre site in the Montgomery Industrial Park.

“This is an important decision for us and at the same time a milestone in the company history,” noted Reinhard Hoffman, managing director for the German parent company, in a news release.

Gerhardi's origins date back to 1796, when the business emerged as a pioneer in production of brass and copper buckles. Its focus turned to auto parts by 1952. It employs about 1,400 at four factories in Lüdenscheid and Innenbüren, Germany.

The Montgomery area alone is home to several automotive OEMs and suppliers, including Mercedes-Benz, Honda and Hyundai.