Dive Brief:
- Germany-based Schaeffler Group will open a 130,000-square-foot auto parts manufacturing facility in Dover, Ohio, the company said in a Feb. 26 press release.
- The $230 million facility will produce parts like electric axles for light- and medium-duty vehicles and is expected to create 650 new jobs.
- Construction on the site will begin mid-2024 and is expected to be finished by Q3 2025. Schaeffler also has plans for future expansions in the state until 2032.
Dive Insight:
The Dover facility will position Schaeffler closer to its customers and strategic suppliers, as well as its existing transmission systems plant in Wooster, Ohio. The site is also in proximity to major OEM facilities in the state, including three Honda plants and LG Energy Solution and General Motor’s joint venture battery plant.
Schaeffler operates nine manufacturing plants across the U.S., with two in Ohio and the others in South Carolina, Missouri and Connecticut.
Schaeffler recently completed a nearly 90,000-square-feet expansion of its Wooster site to produce electric motors and components for electric powertrain systems. The auto supplier also announced an expanded relationship with Ohio State University to create a new battery cell research and development center that will open next year.
The company is partnering with the Ohio government and the state’s private economic development authority JobsOhio on the new site and will receive incentives via grants and tax credits. Schaeffler said it’s reviewing if the Dover facility is a potential candidate for benefits provided under the Inflation Reduction Act with the goal of further improving the domestic electric vehicle supply chain and local workforce skill sets.
The plant is one of multiple auto parts investments announced in Ohio in the past year. In May 2023, brake systems manufacturer SFS Group USA announced an expansion to its existing facility in Media, Ohio, for about $33 million. In February, Starr’s Auto Body disclosed plans to bring 150 jobs to the state by upgrading its manufacturing facility that produces cap parts for heavy-duty trucks.
