Canadian auto supplier Hematite Inc. is investing $11.5 million to retrofit a vacant industrial building for production in Fayetteville, Tenn.
The facility, which should be operational in the third quarter of 2020, is the company's second location in the United States. Hematite is based in Guelph, Ontario.
The project is expected to create nearly 70 jobs over the next five years, according to a May 8 news release from the Tennessee Department of Economic and Community Development.
"We are really excited to have Hematite's next location situated in Fayetteville. The location is a strategic fit with our customers' locations as well as a great pool of local talent that we look forward to adding to our team," John Pavanel, president of Hematite, said in a statement. "The process could not have worked better for us."
Hematite, a Tier 1 supplier, uses recycled materials to make products that are designed to manage vehicle acoustics, airflow and water deflection for the automotive and industrial markets. Parts include insulators, body plugs, wheel liners, air deflectors, and under-engine covers, among other components. The company does waste-stream recycling, extrusion, injection molding and thermoforming.
In May 2017, Hematite announced it was expanding into the U.S. with the construction of a 106,000-square-foot facility in Englewood, Ohio, that would serve as its U.S. headquarters and have more than 100 full-time employees.
The $18 million project was slated for completion in November 2017, with production operations starting in 2018.
"Our expansion into the U.S. is a natural evolution for our company as we need to be closer to our customers," Pavanel said in a 2017 press release on the strategy. "We look forward to continuing our many great years of service for customers such as FCA, VW, Toyota, Ford and Honda from our Englewood facility."
Hematite has additional manufacturing operations in Brantford, Ontario, as well as global sales and engineering support in Mexico, Germany and the U.S.