MONEY

Magna Seating unveils Spring Hill facility

Mealand Ragland-Hudgins

SPRING HILL – The more Tennessee puts into the auto manufacturing sector, the more the state will receive in return, Gov. Bill Haslam said.

Haslam was on hand for Monday's grand opening of the Magna Seating facility located near the General Motors plant. The company supplies parts for a number of automakers, but the local facility will focus on seats and other components for the Chevrolet Equinox and the Cadillac SRX, which is scheduled to being production in Spring Hill in 2016.

"Automotive is the ultimate synergy business," the governor said following a tour of the facility. "The more you have, the more it brings. We're seeing that time and time again. Obviously, it's our hope to keep that momentum going."

Magna built the new $16 million, 122,500-square-foot facility in 141 days, replacing its temporary home in Columbia, some 16 miles to the south. The Spring Hill site officially opened in January.

Auto manufacturing currently accounts for one out of every 20 non-farm, private jobs statewide. Statewide, the industry is made up of more than 900 companies employing more than 111,000 workers, according to the state's Department of Economic and Community Development.

Magna Seating President Mike Bisson said the move provides his company with the space it needs to take on additional work.

"What this really does is set us up for the new Cadillac. This is a big step forward for us," he said.

The company currently employs 75 workers, but that number is expected to increase to 350 in 2016 when production of the Cadillac vehicle begins.

Company officials said the facility is on pace to produce 40,000 units this year.

"Every time we bring an (original equipment manufacture) to the state, this helps get more suppliers. This company will need some of their suppliers to come locate with them," said Economic and Community Development Commissioner Randy Boyd.

Just last month, Nissan announced a new supplier park adjacent to its Smyrna manufacturing facility would create 1,000 jobs. The move is part of the trend known as just-in-time manufacturing, a production model in which parts are produced based on need, rather than meeting an anticipated demand or inventory.

According to Business Facilities magazine, Tennessee's automotive manufacturing industry generates more than $35 billion. The Volunteer State has been named the magazine's top state in automotive manufacturing strength for four of the last five years.

Reach Mealand Ragland-Hudgins at 615-259-8062 or on Twitter @mrhudgins4.

About Magna Seating

What: Manufactures seating for Chevrolet Equinox and the soon-to-be produced Cadillac SRX

Where: Spring Hill

Headquarters: Troy, Michigan

Employees: 74, with additional 350 jobs on the way once Cadillac SRX production begins at local General Motors facility

Other Customers: Fiat Chrysler, Volkswagen, Toyota, Ford, Honda