MBUSI Supplier Investing Nearly $4.2M In Cottondale Expansion

TUSCALOOSA, AL — SMP Automotive Systems Alabama will soon expand at the Cedar Cove Technology Park as the supplier for Mercedes-Benz U.S. International will invest nearly $4.2 million on a third facility in Cottondale.

The Tuscaloosa County Industrial Development Authority said in a press release on Tuesday that it had approved a tax abatement package as part of the investment, according to Danielle Winningham, TCIDA executive director.

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The Alabama-based subsidiary of Samvardhana Motherson Group (SMG), previously started work on a 700,000-square-foot plant in Tuscaloosa in 2015 to supply various exterior and interior components for future models to be produced at the Mercedes‐Benz U.S. International plant before investing in a second facility on Brookwood Parkway in 2019.

The two plants currently employ more than 1,900 people and manufacture multiple automotive components and supplies logistics, while offering other services to MBUSI.

TCIDA says the company will receive an abatement of the non‐educational sales and use taxes
for purchases of equipment and building materials during the construction phase of the project.

The company says it expects to utilize approximately 112 employees, including at least four new hires, while other positions will likely be filled with existing personnel transferred from Plant 1.

The company’s investment will support new and on‐going activities at SMP’s
initial plant.

“Tuscaloosa County is proud to be the home to now three SMP facilities,” stated TCIDA Chairman Mark Crews. “This project enhances the company’s footprint in our community while enhancing job opportunities and advancements for our citizens.”

Breakdown of incentives:

• The company will be eligible for tax abatements in an estimated amount of $263,958.
• During the first 10 years of operations, the SMP expansion is estimated to contribute almost
  $200,000 in tax revenue in non‐abated taxes, including education taxes, from initial purchases alone.
• The project is expected to contribute more than $800,000 over the next 20 years in certain taxes generated from the company and direct employee spending.

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