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Mercedes-Benz Invest $1.3 Billion in Alabama Plant, Expands SUV Production

Sep 19, 2015 01:17 AM EDT | By Jean-Claude Arnobit

Mercedes-Benz is investing $1.3 billion and adding 300 jobs in its U.S. plant in Tuscaloosa, Alabama, according to a press release issued by Mercedes-Benz.

The company will be expanding its SUV production in the plant and make it a high-tech location.

The German automaker said in the press release that they will be upgrading their plant in Tuscaloosa which includes the construction of a new body shop and the expansion of its SUV assembly line.

Mercedes-Benz will also be modernizing its logistics and IT systems.

The company also said in the press release that the new plant will be combining the latest lightweight body technology with an innovative joining process.

The new plant will have a more flexible "wedding station" to which the body is brought together with the powertrain.

Jason Hoff, president and CEO of Mercedes-Benz U.S. International, said in the press release that the expansion of the plant continues the Tuscaloosa's "success story."

"With the expansion and modernization of our plant, we create 300 new jobs and the success story of Mercedes-Benz in Tuscaloosa continues," he said. "Alabama is one of the most important states for the automotive production in the US. We are proud to play an important role here once more. "

AL.com adds that Hoff is calling the new plant "Project Gateway" and is a testament to the commitment of the plant's workforce.

"We call it a gateway to the future," he said. "We've been the home of Mercedes SUVs for almost 20 years, and this just further cements our position."

AL. com adds that the expansion of the Tuscaloosa plant brings the automaker's investment to the plant to about $5.8 billion.

It also raises its workforce to approximately 3,800 full-time employees.

Felyicia Jerald, the Tuscaloosa plant spokeswoman, told AL.com that the 300 new jobs are permanent ones.

She adds that 50 of the new positions to be added are for highly skilled engineers.

AL.com adds that the majority of the work in the expansion is expected to be completed by the middle of 2017.

Mercedes-Benz adds in the press release that the plant will support the production of the company's new generation SUV, including the hybrid versions.

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