Airbus needed a prime location for its first US manufacturing plant, and its site-selection requirements were very specific. Today, the European aviation giant’s $600m production hub is rising in Mobile, Alabama, where it overlooks two runways and one of the country’s busiest deep-water ports. The site is served by five Class 1 railroads and connects to the interstate roadway network.
Between 2011 and 2013, companies from Germany, France and the UK invested more than $1.7bn in Alabama projects
To put it simply, Airbus found everything it needed in Alabama to launch manufacturing operations in North America. Later this year, the company’s Mobile workforce will begin assembling A320 family passenger jets.
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Alan McArtor, Chairman and CEO of Airbus Americas, said of the company’s choice: “We were looking for an industrial home, and we looked at states all over the US and around the coastal community. We wanted an airport, we wanted lots of real estate, and we wanted a deep-water port. So, when we narrowed it down to the finalists, Alabama to us was the most business friendly state we could find.”
Airbus is just one of many European companies that has established roots in Alabama. Thanks to a strong logistics network, a capable workforce, and other advantages, Alabama has become a favoured destination for European companies searching for a base in the North American market.
A major reason for this is Alabama’s great partnership with Mercedes-Benz. In 1993, Mercedes announced it had selected Alabama over 36 other states as the site for its first US assembly plant, an important strategic move for the company. With the cooperation of Alabama officials, the plant has been in constant expansion ever since.
Today, the German automaker has invested a total of $4bn in its Alabama facility, which is now gearing up to add a new vehicle, the GLE Coupé, to its production range. The plant has become one of Mercedes’ most important, and its capacity is being expanded by 67 percent.
Friend to a continent
Over the years, Alabama has proven a friendly environment for scores of European companies. More than 70 German companies call Alabama home, including Siemens, BASF and Evonik. Around 40 French companies have facilities in Alabama, including Labinal’s Safran Group, Michelin and Imerys. Nearly 30 UK firms operate in the state, among them BP and BAE Systems.
Economic bonds between Alabama and Europe are strengthening. Between 2011 and 2013, companies from those three countries alone invested more than $1.7bn in Alabama projects. The state’s workforce training programmes assisted in many of them.
AIDT, a division of the Alabama Department of Commerce, has helped thousands of companies assemble and train workforces. AIDT recently established a $7m training facility at Mobile Aeroplex to prepare Airbus workers for aircraft assembly. Meanwhile, European companies have been complementing their Alabama manufacturing operations with research and development activities. UK-based GKN Aerospace is opening an engineering design centre at its Alabama aerostructures facility that will focus on advanced composites. Evonik is planning to open a global innovation centre in the state, specialising in medical devices and technologies.
The success of European companies in Alabama shows that the state has the infrastructure, skilled workers, training programmes and other advantages that make it an ideal site for business.
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