Business
09:58, 10-Jan-2018
Toyota, Mazda to build $1.6 billion plant in Alabama: sources
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Japanese automotive giants Toyota and Mazda have chosen Alabama as the site of a new 1.6 billion US dollars plant, Reuters reported.
A formal announcement by company and state officials is expected on Wednesday in Montgomery, the news agency quoted sources briefed on the matter as saying.
The decision by Toyota Motor Corp. and Mazda Motor Corp. is being seen in Washington as a victory for President Donald Trump who has prodded manufacturers to build new US facilities and threatened tariffs on foreign production.
The plant, which will employ up to 4,000 people and produce about 300,000 vehicles a year, will be located in Huntsville, Alabama, and is a boon for the state, where Toyota has a large engine plant and an existing network of automotive suppliers.
The companies said they expect the plant to open in 2021.
Trump tweeted in March he wanted “new plants to be built here for cars sold here.” The White House did not immediately comment on Tuesday.
The announcement also comes at a time of declining US auto industry sales, so it could exacerbate overcapacity and add pressure to cut prices, Reuters said. US new vehicle sales fell 2 percent in 2017, after hitting an all-time record high in 2016, and are expected to fall further in 2018.
It has been reported the companies sought at least one billion dollars in incentives although details of the final tax and incentive package are not yet known.
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Source(s): Reuters