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Ivey attends DaikyoNishikawa U.S. groundbreaking in Huntsville

Brandon Moseley

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Alabama Gov. Kay Ivey was in Limestone County Thursday, inside the city limits of Huntsville, for the groundbreaking of the new DaikyoNishikawa U.S. auto parts plant.

“I’m proud to welcome another great Japanese company, DaikyoNishikawa, to Sweet Home Alabama, and I know that together we will build a lasting partnership,” Ivey said. “Today marks another pivotal moment for Huntsville as it becomes the next vital production hub for the global auto industry.”

The new plant is being built on the campus of the new 3.1 million square foot Mazda-Toyota Manufacturing U.S. plant (MTMUS). While we were on site, workers were busy constructing the massive new auto assembly plant that DNUS will supply with parts; while road crews were hard at work widening Old County Road 20 in Limestone County to accommodate the expected traffic from the new factories deep in cotton country. The Governor’s office said that as many as 2,500 construction workers will be on site at MTMUS this summer once construction is fully ramped up. Construction crews were poised to begin work on the new DNUS factory.

“I am thrilled that DNUS has made an investment here in Alabama today,” Ivey told the gathered DNUS executives and corporate and Huntsville Chamber of Commerce leaders.

The governor said that today was made possible because of Alabama’s strong business climate and high quality work force. DNUS’s decision to build its first North American plant here in Alabama means that more people will be “able to enjoy a high quality of life.”

“DNUS will add to the high caliber companies doing business in Alabama” Ivey said. “DNUS will highlight our high-quality workforce and show that we are thriving and competitive. May God continue to bless each of you and the great state of Alabama.”

The groundbreaking event officially launched construction on the auto supplier’s $110 million manufacturing plant in North Alabama.

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“As our first manufacturing facility in North America, DNUS is proud to serve Mazda Toyota and call Huntsville our new home,” said DaikyoNishikama Corporation President Nariaki Uchida. “Together with our business and community partners, our aim is to be a good corporate neighbor and a premiere Tier I automotive supplier.”

President Uchida said that DaikyoNishikama was founded in Hiroshima, where the company is headquartered today. The company has factories in China, Thailand, Indonesia, and Mexico; but highly desired to establish a hub in North America.

Ushida said that the company had a goal of being very “environmentally conscious” and estimated that the facility would be completed in July 2020, but the important thing is that it be built safely.

“I pray for safety of all the workers involved in the construction,” Pres. Uchida said.

The DNUS facility will produce plastic automotive parts for the MTMUS assembly plant and will employ approximately 380 people at full production.

“By selecting Alabama as the site for its first U.S. manufacturing facility, DaikyoNishikawa joins a long list of world-class Japanese companies with growing operations in the state,” said Alabama Commerce Secretary Greg Canfield. “We look forward to working with this high-caliber company to assemble a workforce in Huntsville that can fuel its growth plans.”

Ivey told the Japanese executives that Canfield and the Alabama Department of Commerce were there to help them in anything that they need.

“DaikyoNishikawa is a key manufacturer in the growing cluster of Tier 1 automotive suppliers for MTMUS, and we’re excited to provide the skilled workers for this high-performing auto industry leader,” Huntsville Mayor Tommy Battle said.

“We are honored to be your partner,” Battle told DNUS executives. “We will make sure that you have the best workforce possible.”

Battle said that DNUS is one of three Mazda Toyota suppliers that have already announced that they are locating facilities in Huntsville, with DNUS being both the first to announce and now the first to break ground.

“This is a city that brings engineering and manufacturing together to build amazing things,” Battle concluded. “This is a great victory, not just for Huntsville, and the Tennessee Valley, but all of North Alabama.

“Through collaborative efforts between the public and private sector, our state has positioned itself as a national and global leader the automotive industry,” Economic developer Nicole Jones explained to the Alabama Political Reporter. “The state of Alabama continues to unveil major automotive industry-related announcements, which translates into more jobs in our area. DaikyoNishikawa’s decision to establish its first US presence at the Mazda Toyota plant in north Alabama is an important component of the automotive supply chain and is a testament to the creation of an environment conducive for business.”

Demonstrating the company’s commitment to be good corporate citizen, DNUS President Seiji Okada presented a check to United Way of Madison for $10,000 at Thursday’s event.

In May, DNUS became the first auto supplier to announce plans to locate a facility on the site of the Mazda Toyota joint venture assembly plant, which will have the capacity to produce up to 300,000 vehicles annually. The Mazda-Toyota partnership is investing $1.6 billion to open the Huntsville assembly plant, which will employ up to 4,000 people.

The DNUS facility will begins operations coinciding with the start of MTMUS vehicle production in 2021. DNUS’s Alabama workforce will manufacture large resin parts such as bumpers and instrument panels for Mazda and Toyota.

DaikyoNishikawa operates about a dozen research and development centers and manufacturing plants in Japan in addition to its production sites in Mexico, Thailand, Indonesia and China.

The company employs more than 5,000 people worldwide.

Five MTMUS suppliers, including DNUS, have already announced plans to build factories in North Alabama, employing 1,700 workers, most of them in Huntsville.

DNUS has already started hiring qualified candidates.

The Alabama Political Reporter asked Gov. Ivey that with all of the announcements of new jobs at Mazda-Toyota, auto suppliers like DNUS, as well as drones, and rocket engines at Blue Origins, if there was a danger that that state would not be able to keep all of these facilities supplied with competent labor.

Ivey said that is why she has been stressing workforce development and one of the reasons why she is working to improve K-12 education in the state.

Brandon Moseley is a senior reporter with eight and a half years at Alabama Political Reporter. You can email him at [email protected] or follow him on Facebook. Brandon is a native of Moody, Alabama, a graduate of Auburn University, and a seventh generation Alabamian.

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Economy

New unemployment claims held steady in June, state says

Micah Danney

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The number of Alabamians filing for unemployment insurance held more or less steady over the course of June, with 18,340 new claims added during the last week of the month, according to the Alabama Department of Labor.

There were 19,950 new claims in the first week of June and 18,367 in the second week, then a slight jump to 18,671 in the third week. 

The month’s total of 75,328 new claims comes after Gov. Kay Ivey relaxed some restrictions meant to slow the spread of COVID-19 and allowed more businesses to open. The numbers vary by industry and county, but generally represent some stabilization, according to department spokesperson Tara Hutchison.

“They remain significantly down from a high in excess of 100,000 in April, which is good news. I don’t know if we can really expect anything one way or another in this unprecedented situation, but the decline from early in the pandemic is of course welcome news,” Hutchison said.

About 60 percent of last week’s new claims were attributed to COVID-19. 

The state’s unemployment rate dropped from 13.8 percent in April to 9.9 percent in May. That compares to a rate of 3 percent in May 2019.

Jefferson County had the highest share of new claims last week at 2,626, followed by Mobile and Montgomery counties at 1,900 and 1,400, respectively.

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The worst-hit industries that are categorized were administrative and support services, food service and bars, transportation equipment manufacturing, general merchandise stores, nursing and residential care facilities and educational services. 

As of May, counties with the lowest unemployment rates are Clay County at 5.6 percent, Geneva County at 6.3 percent and Shelby County at 6.5 percent. 

Counties with the highest unemployment rates are Wilcox County at 19.3 percent, Lowndes County at 18.3 percent and Greene County at 16.4 percent.

Major cities with the lowest unemployment rates are Vestavia Hills at 5.2 percent, Homewood at 5.4 percent and Madison at 6.2 percent.  

Major cities with the highest unemployment rates are Prichard at 18.6 percent, Selma at 17.1 percent and Gadsden at 15.7 percent.

Wage and salary employment increased in May by 42,500, according to the department.

Average weekly earnings increased to a record high in May, rising to $905.25 per week, representing an increase of $66.43 over the year.

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Economy

Secretaries of State share joint statement on importance of USMCA launch

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Following the completion of the necessary measures to comply with commitments under the United States-Mexico-Canada Agreement (USMCA), the Agreement officially enters into force today, July 1, 2020.

As Secretaries of State who oversee the business filings process in the respective states of Alabama, Iowa, Kentucky, Louisiana, Mississippi, Missouri, Nebraska, Ohio, Texas, and Wyoming, Secretaries John H. Merrill (Alabama), Paul D. Pate (Iowa), Michael G. Adams (Kentucky), Kyle Ardoin (Louisiana), Michael Watson (Mississippi), John R. Ashcroft (Missouri), Bob Evnen (Nebraska), Frank LaRose (Ohio), Ruth Hughs (Texas), and Edward A. Buchanan (Wyoming) recognize and appreciate firsthand the positive impact the USMCA will have on entrepreneurs across the country.

“Alabama’s international engagement fuels job growth and increases exports. The success of Alabama businesses depends on the participation and competitiveness of our global counterparts. Alabama totaled $6.6 billion in exports to Canada and Mexico in 2018, supporting families and businesses across the state” noted Alabama Secretary of State John H. Merrill. “I was delighted to join President Donald J. Trump in January of this year as he signed this mutually beneficial agreement, and I look forward to its future success.”

“The USMCA is a great opportunity for Iowa’s farmers, businesses and families. The launch of this agreement comes at a vital time for our country and will provide a much needed boost to our economy. Canada and Mexico bought $6.5 billion worth of goods from Iowa in 2018 and this deal ensures our partnerships with these neighbors will continue,” stated Iowa Secretary of State Paul Pate.

“The USMCA entering into force is a great deal and a win for American and Louisiana workers. The USMCA will help support and grow our economy, boost small businesses, help our farmers, manufacturers, and workers, and ensure more Louisiana-made products can be sent internationally. Trade is important to Louisiana’s economy and this deal will help boost both,” stated Louisiana Secretary of State Kyle Ardoin.

“During a time when the future of our economy seems nebulous, the USCMA creates a portal for modern opportunities and prosperous partnerships,” said Mississippi Secretary of State Michael Watson. “The enhanced agreement will undoubtedly revive businesses and help boost innovation in our state. I applaud President Trump’s leadership and dedication to ensuring a fair playing field for Mississippi farmers, ranchers, and entrepreneurs.”

“Missouri is grateful for this historic agreement, which will help Missouri agriculture and businesses grow with more jobs and increasing exports.  As our economy recovers, getting businesses and people back to work, this will help ensure success for large and small businesses who compete and form partnerships with our neighbors.  We stand ready to assist our entrepreneurs and businesses,” replied Missouri Secretary of State John R. Ashcroft.

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Nebraska Secretary of State Bob Evnen noted, “The USMCA provides expanded opportunities for Nebraska’s livestock industry, and our ag commodity and specialty crop producers. The USMCA builds on the successes and corrects the problems of NAFTA, and gives us expanded opportunities for Nebraska’s ag trade with our friends in Mexico and Canada. This excellent agreement now serves as a template for other international free trade agreements, so we have cause for optimism on many fronts.”

“Today is a day Ohio’s farmers and entrepreneurs have been waiting for,” said Ohio Secretary of State Frank LaRose. “As our nation’s economy continues to recover, the USMCA is a much needed boost as they compete on the global stage. Thanks to the leadership of President Trump, Senator Portman and bipartisan leaders from across our nation, Ohio is poised for our next giant leap, and my office looks forward to helping make it happen.”

“Last year alone, trade between Texas and its two largest trade partners—Mexico and Canada—totaled more than $200 billion. This exchange supports the more than 950,000 Texas jobs that are tied directly to trade with Mexico and Canada,” said Texas Secretary of State Ruth Hughs. “The implementation of the USMCA provides tremendous benefit to all parties involved in the trade deal and will help to ensure years of mutual economic benefit and prosperity for all. We look forward to further strengthening our relationship with our trade partners as we enter a new era of innovation and success.”

“The USMCA trade deal has high standards and rebalances North American trade to provide a stronger market for Wyoming’s and our Nation’s goods. This is a great day for our country, as businesses will better be able to participate in cross-border trade. USMCA ensures fair business practices by our neighbors and now the advantage will be back in the hands of the American worker,” stated Wyoming Secretary of State Edward Buchanan.

This historic trade agreement will result in freer markets, fairer trade, and strong economic growth across North America, creating new opportunities for American workers, farmers, ranchers, and business owners.

 

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Economy

Ivey announces SiO2’s $163 million expansion in Auburn

Brandon Moseley

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Alabama Gov. Kay Ivey announced Wednesday that SiO2 Materials Science plans to invest $163 million in an expansion at its Auburn facility.

The announcement came just after securing a major contract to supply the federal government with vials to support the COVID-19 vaccine effort if and when an effective vaccine is developed. The project will create 220 jobs.

“It is exciting to know that SiO2 will be directly involved in providing a product essential to addressing the COVID-19 crisis, which will impact not only Alabamians but the entire country,” Ivey said. “This is a testament to the ingenuity of this great company and its growing Alabama workforce.”

Economic developer Nicole Jones told the Alabama Political Reporter, “Vials produced by SiO2 Materials Science may be the critical component needed to ensure safety in the vaccine distribution process. The breakthrough technology developed by the Auburn-based company provides a glimmer of hope amidst challenging times and showcases how Alabamians are working diligently to craft solutions that will assist our nation and the world in the fight against COVID-19. In addition, the 220 new, high-skilled jobs housed in Auburn Technology Park West will bring economic benefits to Lee County as well as the entire state of Alabama.”

The expansion will allow SiO2 to increase its production capacity so that it can meet the expected demand for vials and syringes when a coronavirus vaccine is finally approved for mass use.

In June, SiO2 announced an $143 million contract with federal government agencies for a production scale-up of the company’s state-of-the-art packaging platform for storing novel coronavirus (SARS-CoV-2) vaccines and therapeutics.

Bobby Abrams is the CEO of SiO2.

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“The pandemic presents an enormous challenge for all people,” Abrams said. “We are extremely grateful for Senator Shelby’s steadfast support and assistance, and we’re honored to collaborate with our government so a COVID-19 vaccine can be safely and quickly distributed. The State of Alabama and the City of Auburn for many years have been very supportive of SiO2 Materials Science during its research, development, commercialization, and now scale-up phases of the company.”

Over the last 10 years, SiO2 has developed its patented vial platform, which combines a plastic container with a microscopic, pure glass coating on the inside that is ideal for biological drugs and vaccines. The product, developed in Auburn with help from experts from four major U.S. research institutions, combines the benefits of both glass and plastic without drawbacks.

“There are problems with plastic, and there are problems with glass, and we resolve all of them,” Abrams said.

SiO2 will expand its existing facility at 2250 Riley Street and will invest in a new molding facility at 2425 Innovation Drive, both located in the Auburn Technology Park West.

Construction is already under way to expand the facility on Innovation Drive. The completed approximately 70,000-square-foot facility will increase the production capacity of SiO2’s injection molding operation.

“We’re proud to have some of the world’s leading scientists and product developers working in our community,” Auburn Mayor Ron Anders said. “With the presence of these companies and Auburn University’s outstanding medical and engineering programs, we believe we’ll see significant growth in the biotech industry right here in Auburn. On top of that, the well-paying jobs created through this project will result in significant economic opportunities for our local businesses.”

Greg Canfield, the secretary of the Alabama Department of Commerce, said that SiO2’s expansion project in Auburn will help ensure that the nation’s health authorities have an ample supply of vials and syringes to administer a vaccine for COVID-19 as soon as it is developed.

“Having a steady supply of SiO2’s innovative vials will represent a key strategic advantage for federal agencies wanting to act rapidly once a vaccine is available to counter the coronavirus,” Canfield said.

Robert S. Langer is a professor at the David H. Koch Institute at MIT and a company adviser.

A key element of SiO2’s product is enhanced safety for healthcare providers and for patients, who are at a lower risk of adverse side effects. A combination of plastic and a microscopic layer of glass also means vials and syringes won’t break, shatter or crack. SiO2 ships its products worldwide.

“Many drug development and drug formulation innovations can be limited due to variables associated with traditional glass vials and syringes,” Langer said. “The SiO2 vials and syringes eliminate these variables and allow drug development partners to bring their innovations to life.”

SiO2 is a privately-owned company based in Auburn, where it has around 200 employees. The Retirement Systems of Alabama provided early financial support for the company.

517,464 people have already died from the COVID-19 global pandemic, including 130,602 Americans.

 

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Economy

ADOL announces extended benefits program to begin

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The Alabama Department of Labor announced today that the state will begin offering Extended Benefits (EB) for those who qualify and have exhausted previous benefits.

This is a separate program from the Pandemic Emergency Unemployment Compensation (PEUC) program that was enacted under the CARES Act.

The EB program is a federal program that is triggered when a state’s insured unemployment rate exceeds 5.9 percent. Alabama’s weekly insured unemployment rate* of 6.11 percent triggered the state onto a 13-week EB period beginning the week of May 31. It is usually available during times of adverse economic conditions. The last time Alabama offered the EB program was during the Great Recession of 2008.

While EB is available for UP TO 13 weeks, not all claimants will be eligible to receive all weeks.  Alabamians can begin claiming these benefits on July 5, 2020.

Claimants must first exhaust all regular UC and PEUC benefits before they will be eligible for EB benefits.  Claimants must not be eligible for unemployment compensation benefits in another state or Canada, must have no disqualifications, have qualifying wages, and must have at least one week in the benefit year that begins in an EB eligibility period. Specific eligibility criteria can be found at: https://wdr.doleta.gov/directives/attach/UIPL/UIPL_24-20.pdf.

Individuals are only entitled to benefits if they are no longer working through no fault of their own and they MUST be able and available for work.  The EB program has more stringent work search requirements and requires claimants to engage in a “systematic and sustained” effort to obtain work during each week and to provide evidence of efforts.  Due to the pandemic, the submission of required work search contacts has been TEMPORARILY waived due to Covid-19 restrictions. However, claimants should continue to look for work where possible, and maintain a record of their efforts on a weekly basis.  This waiver may end at any time.  Once this waiver ends, claimants will be required to provide a minimum of three (3) work search contacts each week during the weekly certification process. 

ADOL will notify those eligible for EB benefits via the UI Claims Tracker and by mail. Claimants will not have to apply for these benefits, but should continue to file weekly certifications.

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