Schaeffler expands production in the USA for EV components
The German supplier Schaeffler has released a statement announcing investments of over 230 million US dollars (around 212 million euros) in two US sites in the state of Ohio by 2032, focussed on electric vehicle components. This will involve the construction of a new production site in Dover and the further expansion of the existing plant in Wooster. The factory in Wooster specializes in the production of electric transmission systems and also serves as an innovation centre for electric vehicles.
The construction of the new plant in Dover is to start in mid-2024, becoming what it says will be an “advanced manufacturing space dedicated to electric mobility solutions for the automotive industry”. Once completed, the German supplier plans to produce components and systems for electric vehicles, such as electric axles for passenger cars and light commercial vehicles, on an area of over 12,000 square meters.
“Our new plant will play a pivotal role in shaping our future in the Americas region,” said Marc McGrath, Schaeffler’s Regional CEO Americas, explaining that the new location should further the company’s “innovative product range.” He explained, “Our new Dover, Ohio facility will feature state-of-the-art production processes so we can better serve our customers while also adopting sustainable practices.” The site in Dover was chosen due to its logistically and strategically advantageous location with what the company says is good infrastructure and in close proximity to customers, suppliers and the Schaeffler site in Wooster.
According to Schaeffler, it is also examining whether the new site in Dover is a “potential candidate for benefits provided under the U.S. Inflation Reduction Act with the goal of further improving the domestic electric vehicle supply chain and local workforce skill sets.” This is conceivable since the supplier is also initiating a partnership with Ohio State University that includes the establishment of a new research and development centre for battery cells by 2025.
Schaeffler says it currently operates 15 plants and five research and development sites in the Americas region, including production sites in Ohio, South Carolina, Missouri and Connecticut. The USA is considered a strategic growth market for the company. “We are convinced that the trend towards more electrification will continue,” emphasizes Klaus Rosenfeld, CEO of Schaeffler AG. The company is also perfectly positioned to benefit from its technological leadership in the field of hybrid and consumption-optimized combustion technologies – especially in the USA. “On this basis, we are striving to help our customers achieve their emissions targets and realize our growth ambitions.”
The company says its overall investments in the two sites is expected to create a total of 650 additional jobs in the “mobility of the future” sector in Ohio by 2032. The project is being supported by the state of Ohio and the state-owned company JobsOhio. Around 450 jobs are to be created at the Dover site by 2032, the company plans to create a further 200 new jobs in Wooster with plans to manufacture more EV components at this production facility in future.
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