5,400 jobs related to Mazda Toyota coming soon after latest supplier announcement
LIMESTONE COUNTY – A new joint venture, Y-tec Keylex Toyotetsu Alabama, or YKTA, plans to invest $220 million to open a manufacturing facility in Huntsville-annexed Limestone that will create 650 jobs, Gov. Kay Ivey announced Wednesday.
Two other suppliers previously announced plans for creating 794 jobs. The Mazda Toyota plant under construction will employ up to 4,000 workers in Huntsville-annexed Limestone.
The YKTA facility will be located on the site of the Mazda Toyota auto assembly plant, and it will produce structural parts such as body stampings and assemblies, along with functional parts like brake pedals.
YKTA, the second on-site partner to announce construction plans, is a joint venture formed between a trio of Japanese automotive suppliers with operations in North America — Y-tec, Keylex and Toyotetsu.
The venture is a significant addition to the growing cluster of automotive suppliers in the area, Ivey said.
Jackie Hogan, the joint venture’s vice president of administration, said hiring has already started for the professional staff, and hiring will continue through 2021.
Construction work is set to begin this month on YKTA’s 750,000-square-foot facility, located on a 42-acre site north of the Mazda Toyota buildings under construction.
“We’re hoping to move into the building in May of next year and start equipment installation,” Hogan said.
Production is expected to start in the spring of 2021, she said.
Employees to be hired include production and maintenance workers, management and professional staff, like accountants and engineers, Hogan said. Those interested can apply for positions at www.yktal.com.
Salaries haven’t been decided yet, but “we will be competitive in the area,” Hogan said.
The launch of vehicle production at the Mazda Toyota plant is also expected in 2021.
“It is an honor for me to lead this project,” said YKTA President Ryuji Fujimoto. “Our vision is to be the supplier of choice and a model corporate citizen in the community.”
The Mazda-Toyota joint venture is investing $1.6 billion to build and equip its Huntsville assembly plant, which will produce up to 300,000 vehicles annually. The company has said the plant will produce the Toyota Corolla and a new Mazda crossover vehicle.
The announcements by the three major suppliers that they’ll locate in north Alabama followed the January 2018 announcement that the Mazda Toyota plant would be built.
DaikyoNishikawa US (DNUS) announced recently it will locate on the Mazda Toyota site and produce large plastic parts such as bumpers and instrumental panels at a $110 million facility staffed with 380 workers.
Last month, Toyota Boshoku America announced it would invest $55.9 million in a facility in Athens’ Breeding North Industrial Park, where it will make seat systems for the Mazda Toyota plant. The company said it will hire 414 full-time employees at that site.
The YKTA alliance unites three Japanese suppliers:
- Y-tec, established in 1945, produces automotive components and designs and manufactures dies, tooling and jigs for Japanese automakers including Toyota.
- Keylex, established in 1924, specializes in vehicle body parts, produces dies and jigs, and designs and installs production equipment. Its major customer is Mazda, and the company operates a joint venture with Y-tec in Mexico.
- Toyotetsu, established in 1946, is primarily a Toyota supplier and has North American operations in Kentucky, Texas, Canada and Mexico. These plants produce structural parts such as pillars, arms and beams as well as functional parts such as pedals.
YKTA is donating $10,000 to the Boys & Girls Clubs of North Alabama to help expand its robotics program in five area clubs.
Huntsville Mayor Tommy Battle offered a strong welcome to the new joint venture.
“This new three-company consortium brings together some of the top suppliers in the automotive industry,” said Huntsville Mayor Tommy Battle. “As with any success, collaboration is key. YKTA is following the model established by the Mazda Toyota joint venture to create a partnership on a dynamic campus that is going to lead the world in automotive innovation and opportunity.”
“We are excited to welcome YKTA to Limestone County,” added Limestone County Commission Chairman Collin Daly. “This $220 million investment that will create 650 new jobs is a testament to our great county and to our regional workforce that continues to receive global recognition.”
Additional local leaders also offered their support and welcome to YKTA’s announcement.
“This announcement strengthens the already strong Mazda-Toyota partnership with three quality companies with a rich history of supplier success,” said Madison Mayor Paul Finley. “We welcome YKT Alabama to our community and look forward to supporting them as they set up operations on the MTMUS site.”
“The announcement by YKT Alabama demonstrates the vital relationship Mazda Toyota Manufacturing USA shares with their long-time operations partners and suppliers to manufacture the highest quality components for automobiles through high-tech innovation and production,” said Madison County Commission Chairman Dale W. Strong. “We’re delighted to welcome YKT Alabama and the 650 advanced manufacturing jobs that will continue to drive economic growth and development throughout our region.”
