Heiche US Surface Technologies is buying and expanding the Jasper Speculative Building for an automotive industry coatings plant, creating 73 jobs in Walker County.

Heinsdorfergrund, Saxony, Germany-based Heiche, part of KAP Surface Technologies group, plans to expand the speculative building to more than 100,000 square feet and outfit it with state-of-the-art equipment for processes such as passivation (cleaning with silicate layers) and etching passivation (titanium conversion coating), geared towards the auto industry.

“Despite ongoing uncertainty due to the COVID-19 pandemic and widespread reductions or restructurings in the automotive industry, KAP Surface Technologies continues to invest and expand its operations.” said Nicolai A.J. Baum, CEO of KAP Surface Technologies. “By expanding its existing U.S. manufacturing footprint, KAP Surface Technologies expects to strengthen its position in the U.S. market.”

KAP employs more than 800 people in its 10 operations in U.S. and Europe, with women comprising nearly half of its workforce.

“After a lot of planning and extensive building work, the new facility will span over 100,000 square feet and be the most innovative passivation line in the U.S. Through this innovation, KAP Surface Technologies will become an industry leader in the passivation process,” said Christoph Klocke, CEO of Heiche US Surface Technologies.

Klocke, who will oversee the construction and operation of the new facility in Jasper, said production is scheduled to begin in October 2021.

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“We chose Jasper because we see a huge potential for development,” said Jürgen Werner, head of Mergers and Acquisitions, as well as Greenfield Investments, at KAP Surface Technologies. “Close location to the biggest players in the automotive industry, hospitality of the local authorities and great infrastructure are some of the key aspects, which resulted in our decision for this location.”

Heiche brings another dimension to Alabama’s growing automotive industry.

“Alabama’s automotive industry continues to spark economic growth throughout many parts of the state, and that robust growth is transforming Jasper into a hub for international automotive suppliers,” Alabama Gov. Kay Ivey said. “Heiche is a welcome addition to the automotive supply chain emerging in Walker County and all across Sweet Home Alabama.”

Heiche US Surface Technologies will expand the 53,000-square-foot spec building in Jasper Industrial Park to more than 100,000 square feet. (Walker County Development Authority)

Automotive steel production and coatings are vital processes that can be done in-state for auto suppliers and auto manufacturers.

“Germany’s Heiche is an innovative company that specializes in sophisticated metal-coating processes used in automotive manufacturing,” said Alabama Commerce Secretary Greg Canfield. “Along with new jobs in Jasper, Heiche will bring new expertise and advanced technological capabilities to the state’s increasingly dynamic automotive industry. We welcome them as a partner.”

KAP’s Werner said property was important, but people were vital to their selection of Jasper.

“Another, and in my personal opinion, most important point are people,” he said. “We immediately felt at home here.”

The Heiche project is the latest automotive win for Walker County and the city of Jasper. Heiche will become the fifth automotive supplier and the first German company to operate a manufacturing facility in Jasper.

“Job growth is the very core of growing a city and on behalf of all in city government we are pleased with the decision by Heiche to locate in Jasper,” Jasper Mayor David O’Mary said. “We welcome the Heiche team and look forward to a long and mutually beneficial relationship.”

The recruitment of Heiche to Walker County was a team approach to economic development.

“The cooperation between the state, local leaders, industrial boards, utilities and regional allies was critical to the successful recruitment of Heiche,” said David Knight, executive director of the Walker County Development Authority. “As an industry leader in advanced metal coatings, Heiche and their state-of-the-art facility are a welcome addition to our community, and will help further our efforts to grow and diversify our local economy.”

Jobs and investment are always welcome, but especially as communities seek to emerge from the COVID economy, Alabama Sen. Greg Reed said.

“This announcement is great news for Jasper and Walker County,” Reed said. “Heiche is a premier company that will bring with it high-paying jobs and millions of dollars of investment to our community. I applaud all involved in bringing this project to our area.”

State Rep. Connie Rowe agreed.

Heiche US Surface Technologies will expand the 53,000-square-foot spec building in Jasper Industrial Park to more than 100,000 square feet. (Walker County Development Authority)

“Like every other citizen in Walker County, I am thrilled to see jobs and job creators coming into our community,” Rowe said. “The work of the Walker County Development Authority, the Jasper Industrial Development Board and the city of Jasper is deeply appreciated. The proposed investment is impressive, as are the overall returns we’ll enjoy through employment opportunities and collaterally generated revenue. This is great news coming at the end of a tough year.”

With a tight timeline and contracts in place to provide components to its customers, which include OEMs and other automotive suppliers, Heiche will begin construction on the new facility in the coming weeks and is expected to complete construction and be in production by October 2021.

“This is an exciting time for the city and Walker County as Heiche, a German company, decides to locate in Jasper, Alabama,” said Terry Gurganus, chairman of the Jasper Industrial Development Board. “The technology and reputation they bring adds another notch to the long list of automotive suppliers to this area. The investment made on their part and creation of jobs is another step in creating quality opportunities for all of us.”

Cooperation between entities create such opportunities, according to Walker County Commission Chair Steve Miller.

“One of the goals of the commission is to work to bring industry into our area, and we are happy to partner with the Walker County Development Authority, the Jasper Industrial Development Board and the city of Jasper to bring that to fruition,” Miller said. “Job creation is so vital to the sustainability of this area, and we are excited about the opportunities that Heiche will bring for the citizens of Walker County.”

Jasper has had great success with the Alabama Power Speculative Building Program. Alabama Power assisted in the recruitment of Heiche.

“We are thrilled to welcome Heiche to our state’s booming automotive industry,” said Leigh Davis, Alabama Power vice president of Economic and Community Development. “Alabama Power is excited to partner with the city of Jasper, Walker County and the state of Alabama to support Heiche as they grow their presence in Alabama.”