Birmingham has investment from companies all over the world.
Foreign-based companies continue their investment in Birmingham at a steady pace, led by companies based in Germany and Japan that serve Central Alabama’s booming automotive industry, propelled by nearby Mercedes-Benz U.S. International and Honda Manufacturing of Alabama.
Companies like Japan’s Unipres, a global leader in stamping technology, announced a $6.3 million expansion at its production facility in Steele last August, and Germany’s Heiche US Surface Technologies announced it is creating 73 jobs in Walker County in December, adding to the more than 80 foreign-based companies from 21 countries across the globe already located in the Birmingham region.
According to the Birmingham Business Alliance, German-based companies have the strongest presence here with 28 companies, followed by 22 Japan-based companies.
Foreign-based investments provide our region economic growth, increased jobs, development of human capital, an increased tax base and a more diversified economy, said the Birmingham Business Alliance’s Vice President of Economic Development Jeff Traywick, who works to recruit many foreign-based companies into the region. They are also attracted to a low cost of living – only 87 percent of the national average, much lower than competing metros across the Southeastern U.S.
German-based companies have grown tremendously over the past few years, Traywick said. ThyssenKrupp Materials announced its first location in the Birmingham region in 2012, and, in 2016, Mercedes-Benz U.S. International announced several major expansions that would launch the company into manufacturing electric vehicles. MollerTech also announced its presence in the region in 2016, and Heiche US Surface Technology LP announced an expansion in the region.
Four of the 28 German companies with a presence in Birmingham – Mercedes-Benz U.S. International, Eissman Automotive, Evonik Industries and WKW Erbsloeh Automotive – have brought nearly 2,000 jobs and over $613 million to the region.
Japanese foreign investment also has grown steadily over the last few years, Traywick said. Three of the 22 companies with a presence in the region – Unipres Alabama, Yorozu Automotive Alabama and HTNA – have brought over 750 jobs and $200 million in capital investment.
Foreign direct investment from life science companies is also on the rise. German specialty chemical company Evonik has invested $50 million since 2014 in its health care facility in Birmingham, and recently acquired the Birmingham-based product line of pharmaceutical giant DURECT to the tune of $15 million.
Project activity remains strong from foreign-based companies in 2021, particularly in the automotive and life science industries, Traywick said.
In addition to German and Japanese-based companies, foreign direct investment in Birmingham comes mostly from European countries – Austria, Belgium, Denmark, Finland, France, Greece, Ireland, Luxembourg, Spain, Switzerland and the United Kingdom – while Australia, Asia (China, Saudi Arabia and South Korea), North America (Canada and Mexico) and South America (Brazil and Colombia) are also located here.