28 August 2013

Dr. Schneider Automotive Systems to invest $29 million and create 155 jobs in Kentucky

Russell Springs, Ky. – 28 August 2013 – The Germany-based automotive supplier Dr. Schneider Automotive Systems Inc. is establishing a manufacturing operation in Russell Springs, creating 155 full-time jobs and investing more than $29 million in Kentucky.

The 85-year-old family enterprise is a pioneer in the processing of plastics, and produces high-end vent and trim systems for top automotive original equipment manufacturers around the world. To meet increasing customer demand, the company is establishing a wholly-owned U.S. subsidiary in Russell Springs, where the plant will manufacture parts for companies such as Ford, GM, BMW, Mercedes and Volkswagen.

“We are excited to have Dr. Schneider in the Commonwealth, and we welcome the 155 jobs and $29 million investment in Russell Springs. This is a company with a rich history and a promising future, and we’re especially happy to see it join our thriving auto industry,” said Governor Steve Beshear.

At the end of an intensive selection process where we checked 69 locations, we decided to choose Russell Springs,” said Wilhelm Wirth, member of the Dr. Schneider board of directors. “The decisive factors included the quality and expandability of the facility and the competitive location costs. The professional cooperation with the local and state business development departments confirmed our decision, as well. We are convinced that at this location we will be able to work more efficiently for our current customers, including Mercedes, BMW and Ford, and that we can win new partners.”

The location of Dr. Schneider further strengthens Kentucky’s automotive industry, which includes more than 450 motor vehicle-related facilities. At the mid-year point for 2013, Kentucky ranked third in light vehicle production in the United States and first on a per capita basis.

As a German-owned company, Dr. Schneider increases Kentucky’s foreign direct investment presence. There are approximately 60 German-based companies with facilities in Kentucky, employing more than 8,300 people. Kentucky maintains economic development offices in Hamburg, Germany and Tokyo, Japan, which work to cultivate new and existing relationships abroad for the Commonwealth.

To encourage the investment and job creation in Russell Springs, the Kentucky Economic Development Finance Authority preliminarily approved the company for tax incentives up to $4 million through the Kentucky Business Investment program. The performance-based incentive allows a company to keep a portion of its investment over the term of the agreement through corporate income tax credits and wage assessments by meeting job and investment targets.

The Kentucky Cabinet for Economic Development is the primary state agency in Kentucky responsible for creating new jobs and new investment in the state. New business investment in Kentucky in 2012 totaled nearly $2.7 billion with the creation of more than 14,000 new jobs. 

Source: Kentucky Cabinet for Economic Development