German company Heiche Surface Technologies plans production facility in Alabama, USA

The state of Alabama, through Governor Kay Ivey, announced that Germany-based Heiche Surface Technologies is planning a significant investment to open an advanced metal coating facility in Jasper, Alabama, which will create at least 73 jobs and expand the footprint of Walker County's automotive industry. With customers among automotive manufacturers and suppliers, Heiche will locate its production operation in a speculative building of more than 100,000 square meters in Jasper Industrial Park, just two miles from Interstate 22. Governor Ivey stated, "Alabama's automotive industry continues to fuel economic growth in many parts of our state, and this strong expansion is making Jasper a hub for international automotive suppliers. Heiche, welcome to Walker County and to the emerging automotive supply chain across Sweet Home Alabama."

Construction at Heiche's new Alabama facility is expected to begin in the coming weeks, with operations starting in October 2021.

Founded in 1965, Heiche operates facilities in Germany, Hungary and Poland, and maintains operations in Spartanburg, South Carolina in the United States. Specializing in chemical surface treatment of metal parts, Heiche serves the automotive, machinery and electronics industries. Heiche became part of listed company KAP AG in 2018 and is a significant component of the surface technologies segment. In this segment, the KAP Surface Technologies group operates at 10 locations with more than 800 employees. KAP Surface Technologies CEO Nicolai A.J. Baum said, "Despite ongoing uncertainty due to the COVID-19 pandemic and widespread reductions or restructuring in the automotive industry, KAP Surface Technologies continues to invest and expand its operations. By strategically expanding its existing U.S. manufacturing footprint in Walker County, KAP Surface Technologies expects to strengthen its position in the U.S. market." Heiche will be the fifth automotive supplier and the first German company to operate a production facility in Jasper, which is located within 250 miles of 11 different automotive assembly facilities in the southeastern United States. Existing automotive suppliers, primarily Japanese, currently employ more than 500 people in Jasper. Jürgen Werner, Head of Greenfield Investments as well as Mergers and Acquisitions at KAP Surface Technologies, said, "We chose Jasper because we see great potential for growth. Close proximity to the largest players in the automotive industry, the hospitality of local authorities and excellent infrastructure were among the key factors that led us to choose this location." Following extensive discussions with local representatives, Werner added: "Another and from my personal perspective, the most important point is the people. We felt right at home here immediately."

Alabama Department of Commerce Secretary Greg Canfield said, "German Heiche is an innovative company specializing in sophisticated metal coating processes used in automotive manufacturing. In addition to the new jobs in Jasper, Heiche will bring new expertise and advanced technological capabilities to the state's increasingly dynamic automotive industry. We welcome them as partners."

State Senator Greg Reed said the announcement is great news for Jasper and Walker County. Reed stated, "Heiche is a pioneering company that will bring high-paying jobs and millions of dollars in investment to our community. I applaud everyone involved in bringing this project to our region." The Walker County Development Authority, Jasper Industrial Development Board and the City of Jasper have been working on the Heiche project for the past four months. Mayor David O'Mary said, "Business growth is the essence of building a city, and on behalf of everyone in city government, we are pleased with Heiche's decision to locate in Jasper. We welcome the Heiche team and look forward to a long and mutually beneficial relationship." David Knight, Executive Director of the Walker County Development Authority, said that Heiche's recruitment to Walker County reflects Alabama's "Team" approach to economic development. Knight stated, "Cooperation between the state, local leaders, industry boards, public utilities and regional partners was critical to successfully recruiting Heiche. As an industry leader in advanced metal coatings and with state-of-the-art facilities, Heiche will be a welcome addition to our community and will further assist our efforts to grow and diversify our local economy."