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$220M manufacturing facility, 650 jobs coming to Limestone County for Mazda Toyota

The YKT Alabama facility will be located on the site of the Mazda Toyota Manufacturing U.S.A. (MTMUS) auto assembly plant now under construction in the Limestone County portion of Huntsville.

Posted: May 22, 2019 11:21 AM
Updated: May 22, 2019 8:52 PM

The number of jobs coming because of Mazda-Toyota is growing by the day! 

The new on-site supplier is called YKTA. It's a joint venture of three Japanese-based auto suppliers that all wanted in on the $1.6 billion Mazda-Toyota project.

From The Alabama Department of Commerce


YKTA is constructing an auto parts plant in Huntsville that will be staffed with 650 full-time employees earning an average annual salary of approximately $45,760. Total investment in the project is $220 million. All state incentives are tied to the achievement of milestones in the project.

An analysis by the Alabama Department of Commerce estimates the financial benefits of the project over 20 years:

· Total new payroll: $757 million (construction plus permanent jobs)

· Total new state revenue: $140.7 million

· Return on investment to state: 214%

Under the Alabama Jobs Act, YKTA will receive a jobs credit and an investment credit to facilitate the project, along with workforce development assistance.

· Jobs Credit: Estimated value of $10,234,583 over 10 years

· Investment Credit: Estimated value of $33,300,000 over 10 years

AIDT, the state workforce development agency, has committed to providing services and support valued at $5,158,000.

Note: Local incentives are separate.

"This investment's going to bring 650 brand new jobs for more people in Alabama to go to work," Governor Kay Ivey said. 

On Wednesday, Governor Ivey was alongside local leaders and Mazda-Toyota representatives to announce YKTA's move to North Alabama. Alabama Commerce Secretary Greg Canfield says teaming with other businesses is exactly what this project is about.

"Three great partners and suppliers together from Japan all in one location, and it keeps in the spirit of this being a joint venture," Canfield said

Y-Tec, K, and Toyotetsu will all work under the name YKTA to build metal structures for the plant. Y-Tec and Keylex are highly regarded suppliers to Mazda, while Toyotetsu works alongside Toyota. Together, YKTA becomes the second on-site partner for Mazda-Toyota, and is the biggest one yet.

In fact, Toyota representatives tell WAAY 31 they don't expect a bigger supplier to come in. Construction of the new facility will begin this month and WAAY 31 is told YKTA will start hiring production workers in the Fall of 2020.

Now that the third auto supplier is locked in, Governor Ivey is wondering who's next?

"Mazda-Toyota is a big facility. They may need some more suppliers, but we hope they'll come. We are looking forward to having them," Governor Ivey said. 

Huntsville Mayor Tommy Battle says this is just the beginning.

"As they come and start producing automobiles, we'll see more and more come on. More and more jobs, economy coming from this," Battle said.

Governor Ivey announced the state will expand I-565 near the plant to six lanes. This is one of the first road projects announced from the gas tax. For now, Limestone County Commissioner Jason Black is focused on the growth.

"It's fantastic that we have these tier suppliers coming in and these new companies coming in, just to add to the benefits that we already have," Black said.

YKTA is prepared to be up and running when the Mazda-Toyota plant starts producing vehicles in 2021. The new company donated $10,000 to the Boys and Girls Club of North Alabama to show their commitment to the community.

The YKTA alliance unites three successful 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.

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