Growth in Alabama’s auto supply chain accelerates with major investments – Alabama News Center

Alabama’s automotive industry continues its impressive expansion, with new growth projects and investments from key automotive suppliers adding momentum to the sector.

Over the last few years, the state’s auto manufacturing sector has attracted more than $5 billion in new capital investment, generating around 8,500 job commitments in projects tracked by the Alabama Department of Commerce between 2020 and 2023.

“These investments are a testament to Alabama’s strength as a leading player in the global automotive supply chain,” said Ellen McNair, secretary of the Alabama Department of Commerce. “We’ve built a business-friendly environment where automotive suppliers, large and small, can grow and thrive.

“This growth is creating quality jobs and solidifying Alabama’s standing as a top location for advanced manufacturing in the U.S.”

The most recent development came this month when Mobis broke ground on a $52 million, 460,000-square-foot expansion in Montgomery aimed at enhancing its aftermarket parts operations for Hyundai’s and Kia’s dealer networks across the nation.

The new facility will create 27 additional jobs with an average wage of more than $28 per hour, further strengthening Montgomery’s status as a critical hub for the automotive industry. Learn about Hyundai’s Montgomery plant.

Mobis has invested $475 million in Montgomery since 2002, when it launched operations there, and the company has more than 1,500 employees at the growing site.

“Investment by existing industries is the highest compliment we can receive, and Mobis has demonstrated its commitment by reinvesting in this facility,” said Anna Buckalew, president and CEO of the Montgomery Area Chamber of Commerce. “Over the past 20 years, partnerships and relationships have been the foundation of our success.

“Connecting and supporting our existing industries ensures they continue to grow and thrive,” she said.

In addition to Mobis, other automotive suppliers have also announced substantial projects across the state. In Opelika, Daewon America recently committed to a $46.2 million expansion that will add 100 jobs at its facility in the Northeast Industrial Park.

Daewon’s total investment in Opelika now exceeds $164 million since it began operations in the city in 2006, according to John Sweatman, Opelika’s economic development director.

“Opelika has been an incredibly supportive home for our United States headquarters,” said Chris Cho, president of Daewon America. “We are proud to continue expanding our operations here and further strengthen our ties to the community.”

The additions at Daewon are expected to be completed in summer 2027.

Meanwhile, in Cullman, Rehau recently completed a $66 million investment to introduce a new paint line at its plant, which has created 50 new jobs. Rehau, the first automotive supplier to follow Mercedes-Benz to Alabama, now employs more than 770 people in Cullman and continues to expand its footprint in the region.

In August, Rehau marked the completion of a $66 million investment to introduce a new paint line at its Cullman plant, which has created 50 new jobs. (Hal Yeager / Governor’s Office)

“Rehau’s investment demonstrates the value of Alabama’s workforce and the supportive business environment we’ve cultivated,” said Dale Greer, director of the Cullman Economic Development Authority. “This expansion is proof of the company’s continued confidence in Cullman and Alabama as key locations for their operations.”

Alabama’s automotive industry, launched in the 1990s, has rapidly grown into a national powerhouse. As companies like Mobis, Daewon America and Rehau continue to expand their operations, the state remains a key destination for automotive manufacturing and supply chain growth.

With a strong foundation and an ever-expanding network of suppliers and manufacturers, Alabama’s auto industry shows no signs of slowing down.

This story originally appeared on the Alabama Department of Commerce’s Made in Alabama website. The Montgomery Area Chamber of Commerce, the City of Opelika and the Cullman Tribune supplied material for this story.