Japanese auto parts supplier DaikyoNishikawa Corp. is planning to open its first U.S. plant in Huntsville, Ala., on the site of Mazda Toyota Manufacturing U.S.A. Inc.
The project represents an investment of approximately $110 million and is expected to create around 380 jobs.
The facility, operating under the name DaikyoNishikawa USA Inc. or DNUS for short, will produce large plastic parts such as bumpers and instrument panels for vehicles manufactured at the Mazda Toyota Manufacturing U.S.A. (MTMUS) assembly plant.
Construction on the site is planned for July this year, with production beginning in 2021 to coincide with the start of vehicle production at the MTMUS plant.
"For decades, Alabama has built strong relationships with many leading Japanese businesses, and I know that we will forge a productive, long-lasting partnership with DaikyoNishikawa," Alabama Gov. Kay Ivey said in a statement. "We're pleased that this world-class automotive supplier has selected our state for the site of its first U.S. manufacturing facility and look forward to seeing it put down roots in Sweet Home Alabama, where so many of our Japanese partners have found success."
According to a May 14 news release from the governor's office, DNUS is the first on-site supplier announced for MTMUS, the joint-venture company of Mazda Motor Corp. and Toyota Motor Corp. formed in 2018. The Japanese automakers are investing $1.6 billion in the assembly plant to produce up to 150,000 units of a new Mazda crossover model and 150,000 units of the Toyota Corolla.
Mazda and Toyota also plan to jointly develop technologies for electric vehicles as well as connected technology and advanced safety systems, among other complementary products. The project is expected to create up to 4,000 jobs. Construction on the MTMUS plant began in November 2018 at the 2,500-acre site.
DaikyoNishikawa, based in Hiroshima, Japan, is publicly traded on the Tokyo Stock Exchange. It had sales of approximately 184.3 billion yen ($1.68 billion) for fiscal year 2019, ending March 31. The company makes automotive exterior, interior and engine parts such as rear spoilers, liftgate modules, door trim and engine covers. It also molds various housing components including bathtub pans and gas pipes. DaikyoNishikawa employs more than 5,000 and has production sites in Japan, Mexico, Thailand, Indonesia and China.
Last month another Japanese auto parts supplier said it was investing more than $50 million to open a manufacturing facility in Athens, Ala., about 30 miles west of Huntsville. Toyota Boshoku Corp., a member of the Toyota group of companies, said it would produce seat systems for vehicles built at MTMUS.
A spokeswoman for Toyota Boshoku told Plastics News in an April 18 email that the manufacturing process had not been finalized and therefore was unable to provide additional comment.