Nemak is a leading provider of innovative lightweighting solutions for the global automotive industry, specializing in the development and manufacturing of aluminum components for powertrain and body structure applications. The company employs more than 23,000 people at 38 facilities worldwide, generating revenues of U.S. $4.3 billion in 2016.
Since the founding of its Alabama facility in 2000, Nemak has remained one of the largest employers in Talladega County, employing as many as 700 people. Nemak provides high-quality advanced manufacturing jobs to a severely distressed rural community suffering from high unemployment (15.4%).
The Alabama expansion is a result of three new contracts that will utilize the High Pressure Die Casting (HPDC) technology. Nemak Alabama consists of two plants, which now both utilize modern HPDC technology.
This project received Honorable Mention in the Novogradac 2017 QLICI of the Year awards in the Non-Metro Category.
Total Project Cost: $67.8 million
MuniStrategies Allocation: $10 million (additional $34.2 million from three other CDEs)
Economic: It is difficult to overstate the importance of Nemak’s continued operation and success to the rural Sylacauga, AL community. Nemak is the second largest manufacturer and employer in this rural highly distressed community, which has suffered from thousands of recent job losses. Approximately 46% of households in Sylacauga live with annual incomes of less than $30,000. The population of Talladega County also has significantly low levels of education, with only 13% obtaining a bachelor’s degree or higher.
Jobs: This expansion project will create 116 new jobs in the next four years in addition to maintaining 460 existing jobs at the Sylacauga facility.
Community: 95% of aluminum raw material is recycled, and conversion to high pressure die casting is estimated to decrease harmful emissions by 81%. The Project will also expand Nemak’s business for automotive parts related to hybrid cars.
Workforce Development: Strong workforce development partnerships with Central Alabama Community college and cooperative educational programs with Auburn University, University of Alabama, and University of Alabama at Birmingham