Major Expansion Underway for Local Auto-Parts Manufacturer

South Carolina's emergence as a force in the automotive manufacturing sector was underscored Wednesday as parts maker JTEKT broke ground on a new $102 million plant expansion in nearby Piedmont that will create 100 new jobs when it goes on line next year.

Gov. Nikki Haley attended the ceremonial groundbreaking at the plant, as the sounds of earth-moving equipment whirred outside a party tent that had been set up for the occasion.

Katsuhiko "Ike" Ishikawa, president of the Japanese-owned corporation's South Carolina operations, said construction on the massive plant will be completed by October and will go on line by April 2014.  

The Piedmont plant manufactures automotive steering systems and driveline components. In addition to the southern Greenville County facility, the company also maintains a technical center in Greenville, and other manufacturing plants in Orangeburg, Richland County, and Walhalla, said JTEKT's CEO Noriya Murase.

In a brief speech before touring the existing plant and posing for pictures with workers, Haley said JTEKT's expansion was yet another step in the state's evolution as a major player in the automotive sector, and also highlighted the state's ability to draw foreign investment.

"You hear the sound of those bulldozers?" Haley said. "That's the sound of jobs, jobs, jobs…. We have become an amazing automotive hub, and adding this plant gets us one step further." 

Haley added that she had the opportunity to visit the corporation's headquarters and strengthen the state's relationship with JTEKT during a trip last year to Japan to attend the Japan-U.S. Southeast Association trade show.

Indicative of the state's growth as a major automotive player, the plant, which began operation in 2000 with just three employees, now boasts a workforce of 240 people, said plant manager Drew Rowe.

The South Carolina automotive industry has existed since the early 1900s, when Spartanburg-based textile giant Milliken & Co. made fabric seats and roofs for Henry Ford’s automobiles. Today, according to the S.C. Department of Commerce, South Carolina’s network of more than 250 automotive manufacturing plants and ground-transportation-related companies and suppliers represents a major sector of the state’s economy, and continues to grow.

More than 33,000 people work in ground transportation-related manufacturing and automotive plants in South Carolina, and more work in distribution and logistics, according to the department. 

A recent study by the University of South Carolina found that the state’s automotive and ground transportation industry represents at least 85,000 full-time equivalent jobs, more than 5 percent of the state’s employment base. In addition, jobs in other industries — from electronics to plastics to textiles — support automotive manufacturers in the state, according to the commerce depoartment.

The growth in the state's automotive sector led Business Facilities magazine to rank South Carolina third in "Automotive Manufacturing Strength" in its 2012 rankings report.

"We have this great international company that has chosen South Carolina for a reason," Haley boasted. "They have chosen us because our workforce is good. They have chosen us because our relationships with state government and pro-business policies are good. They have chosen us because we don't deal with the [labor] union issues other states deal with. They have chosen us for the relationship we have. We take care of businesses that take care of us."