Auto supplier plans $ 50 million expansion in Alabama

A German automotive supplier plans to expand its plant in Alabama and will hire 125 new workers.

REHAU is celebrating its 25th anniversary in Cullman, Alabama, and was recently awarded a contract to manufacture polymer-based exterior components for Mercedes-Benz SUVs. The company on Tuesday announced plans to invest $ 50 million in the expansion, al.com reported.

“REHAU has been instrumental in the success of Alabama’s auto industry for 25 years, and it’s great to see the company expand its operations to Cullman,” Governor Kay Ivey said in a statement. “This investment shows that the Alabama-Germany partnership has never been stronger.”

The factory opened in early 1996 with 30 employees. A second pipe production plant for heating and plumbing applications was opened in 2007 and a technical center followed in 2015. Operation REHAU Cullman now has nearly 800 employees.

Plant manager Venki Padmanabhan said REHAU was one of Mercedes-Benz’s early partners in launching its SUV operations in Alabama.

“25 years ago REHAU followed Mercedes-Benz AG to the United States from the Bavarian town of Rehau to Cullman,” said Padmanabhan. “Now we are honored and delighted that they trust us again to support the launch of their new models. “

Mercedes-Benz launched a billion-dollar expansion of its Tuscaloosa County operations in 2017, which included equipping the plant to manufacture electric SUVs, as well as building a battery plant. electrical, a logistics center and a parts and supply center in neighboring Bibb County. The Vance plant will begin producing electric SUVs in 2022.


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