Crosby Woodruff published an article this past week in the Montgomery Advertiser that is a good follow up as to why ThyssenKrupp A.G. chose the south for its manufacturing plant. Mr Woodruff's article is below:
Industry watchers say it is no secret why ThyssenKrupp A.G. wants to locate a new plant in the South.
The German steel manufacturer is following one of its largest customer bases, the automotive industry.
Five major auto plants are in operation or are under construction in Alabama or within an hour's drive of the state line. Each of those plants consumes massive quantities of steel.
The market will find a way to meet that demand, said John Boyd Sr., a veteran site selection consultant.
"This is a product of the shifting of the automotive industry from the upper Midwest to the Southeast," he said.
Robert Burns, a spokesman for Hyundai, said 50 percent of the steel it uses at its Hyundai Motor Manufacturing Alabama plant comes from three domestic suppliers -- AK Steel, Mittal Steel and U.S. Steel.
The balance of rolled steel used comes from POSCO, a Korean firm that ships its steel through the State Docks in Mobile.
Not all of the steel produced by the new plant would be used for automotive production. ThyssenKrupp said its carbon steel would supply the packaging, construction, electrical, utility and appliance industries. Its stainless steel would be used in the appliance, precision machinery and engineered products industries.
Boyd said Alabama's long history in the steel-making industry and its growing list of automotive manufacturing facilities, that include Honda, Hyundai and Mercedes plants, are a big plus for the state.
"Alabama knows steel, and Alabama knows automotive," he said.
