General Motors plans to open a new supplier park to support future vehicle production at its Arlington Assembly, which is located between Dallas and Fort Worth, Texas, that will bring 600 jobs to the U.S.
The move comes with some help from a company controlled by U.S. Secretary of Commerce Wilbur Ross.
The Arlington Plant, which assembles full-size sport utility vehicles for both the U.S and for export, and the new supplier park are expected to house up to 1,250 employees and bring 850 new jobs to Arlington, Texas.
GM estimates nearly 600 of the new manufacturing and professional jobs created in these facilities will replace work previously done outside of the U.S.
(GM powers Arlington plant using wind power. Find out more, Click Here.)
“Through strong supplier and community relations, we’re able create new supplier parks to generate significant benefits to our manufacturing operations and the communities in which we operate,” said Steve Kiefer, GM senior vice president of Global Purchasing and Supply Chain.
“This new supplier park will create improved logistics efficiency and coordination, while also bringing significant employment opportunities to Arlington,” he added.
One of the first companies to claim a spot in the Arlington supplier park is Ross’ International Automobile Components Group. The company will be introducing operations to the Arlington automotive logistics center.
“We are excited to establish this new Arlington location as one of our flagship manufacturing operations among IAC’s 22 other U.S. plants,” said Steve Miller, president and CEO of IAC, which Ross created from the remnants of several other automotive suppliers following the crisis in the supplier industry a decade ago.
IAC is now based in Luxembourg had had sales of $6.6 billion in 2016 as one of a portfolio of companies in which Ross has major investments. President Donald Trump recently said that Ross will head up the U.S. team negotiating changes in the North American Free Trade Agreement with both Mexico and Canada.
IAC, which makes seats and interior components for passenger cars and trucks, currently operates a number of plants in Mexico to serves but over the years has been willing to shape its operations to bolster relations with carmakers willing to award long-term contracts.
(Click Here for details about GM’s summer shutdown plans for its plants.)
Miller said IAC and its predecessors have served as a supplier of vehicle interiors to GM extends back almost a century and this impressive new center marks a great beginning to our next century in partnership with this customer.
The new supplier park near the GM plan will consist of two industrial manufacturing and warehouse buildings comprising more than 1.2 million square feet.
GM currently employs approximately 4,225 people to build the class-leading Chevrolet Tahoe and Suburban, GMC Yukon and Yukon XL and Cadillac Escalade. GM began operations in Arlington in 1954.
Kiefer noted GM has a hand in creating supplier parks adjacent with developers at GM’s Fairfax Assembly Plant in Kansas, Wentzville Assembly Plant in Missouri, Bowling Green Assembly in Kentucky and Fort Wayne Assembly Plant in Indiana and expects to expand the effort.
(GM to lay off up to 1,100 Michigan workers. Click Here for the story.)
Supplier parks locating near assembly plants result in significant savings from reduced transportation costs, higher quality communications and continuous improvement activities, he said.