AW TEXAS, INC. BREAKS GROUND ON $400 MILLION HIGH-TECH MANUFACTURING PLANT
State and local officials celebrate the start of construction in Cibolo, TX
CIBOLO, TX (Nov. 4, 2019) – Representatives from AW Texas, alongside Governor Greg Abbott, City of Cibolo elected officials, and partners, officially broke ground on the AW Texas 159-acre automatic transmission plant in Cibolo, TX.
AW Texas is a subsidiary of Aisin AW Co., Ltd., and a leading manufacturer of transmissions around the world. This plant will be the third transmission plant of the Aisin Group in the U.S. and will bring approximately 900 new jobs to the area over the next five years.
“This new manufacturing plant will be transformative for the county and the region. AW Texas has made an exciting capital investment that will make a significant and positive impact on our economy for years to come,” said Guadalupe County Judge, Kyle Kutscher.
Production of automatic transmissions at the plant is scheduled to begin September 2021, enhancing the state’s already strong reputation as a leader in manufacturing.
“We are grateful for the partnership with AW Texas. Cibolo offers a thriving business environment and ideal location for this type of investment and we look forward to our continued relationship with the company,” said City Manager Robert T. Herrera of Cibolo, TX.
The project is a result of a collaborative effort between the City of Cibolo, Guadalupe County, Guadalupe Valley Electric Cooperative (GVEC), the San Antonio Economic Development Foundation, and the State of Texas.
“GVEC is pleased to be a part of this community partnership and support the infrastructure of this transformative development for Guadalupe County and all of Central Texas,” said GVEC General Manager and CEO, Darren Schauer.
Manufacturing has an estimated $40 billion economic impact on the region and automotive manufacturing employs nearly 43,000 people across Texas. The tremendous growth in the industry will continue to have a positive impact on regional and state-wide economies, bringing high-tech jobs to the area and elevating workforce skills.
“The groundbreaking of this new plant represents the efforts of a strong and strategic regional partnership that will continue to position the area as a global leader and make us more competitive when it comes to working with innovative companies like AW Texas,” said Tom Long, Chief Development Officer of the San Antonio Economic Development Foundation.
|Outline of the company:|
|Company name||AW TEXAS, INC.|
|Location||City of Cibolo, Texas|
|Established||May 30, 2019|
|Capital||USD 10 million|
|Ownership||100% by AW North America|
|Representative||President Satoru Kasuya (now Managing Officer of AW)|
|Site area||159 acres (approx. 643,000 m2)|
|Business description||Production and sale of transmissions|
|Production items||Automatic transmissions, Hybrid transmissions|
|Production capacity||Approx. 200,000 units/year|
|Production start||September 2021 scheduled|
|Number of employees||Approx. 900 (as of the end of 2023)|
About City of Cibolo
The City of Cibolo became a home ruled City in 1965. Cibolo is located in Guadalupe County, with a small portion in Bexar County. The city limits stretch from I35 down to I10, and house a population of 31,000+ that continues to grow every day. On average, Cibolo welcomes 370 new homes and 1200 new residents every year. With a mixture of both suburban and rural lifestyles, Cibolo is one of the fastest growing suburbs on the I35 corridor, and is expanding its industrial, retail, and quality of life to meet the needs of the population. Cibolo is continuing to evolve, while honoring traditions of the past, which is why many families view Cibolo as the “City of Choice” for their businesses, families, and activities.
FOR IMMEDIATE RELEASE Contact: Maddie Dunn
KGBTexas, for AW Texas, Inc.
State and local officials joined corporate and regional economic development leaders wielding shovels to break ground Monday on the $400 million AW Texas plant in Cibolo.
Cibolo City Manager Robert Herrera welcomed Gov. Greg Abbott, County Judge Kyle Kutscher, Cibolo Mayor Stosh Boyle, and Aisin AW leadership, among others, to the site for the new plant, which is one contributor to a record-breaking billion dollars in new foreign direct investment in the region announced this year.
The governor called the event a door-opener for the area and for the state.
“This is a great day for Cibolo, Texas,” Abbott said. “This is something that puts Guadalupe County and Cibolo on the map. What you will see in the coming years and coming decades is this was the beginning of a chapter that will lead to chapter after chapter of a great book about this entire region. You’ll look back and tell your kids and grandkids, ‘I was there on the day the ground was broken on a project that led to all this massive development around the entire region.’”
The groundbreaking on the 159-acre property comes less than two months after the Japan-based manufacturer of vehicle transmissions announced that it had chosen Cibolo for its third plant in the United States. That news came the same day Toyota held a press conference announcing it would invest $391 million to expand its San Antonio plant.
Soon after, on Oct. 1, Continental Structural Plastics, a Teijin Group company that produces composite vehicle components, broke ground for a $700 million manufacturing facility in nearby Seguin that will open in 2021.
Aisin AW is a major supplier of automatic transmissions for Toyota that also owns plants in Michigan and North Carolina. The Cibolo plant is expected to begin production in September 2021 and bring 900 jobs to the region by the end of 2023.Related: Toyota to Invest $391 Million in San Antonio Truck Plant
Chris Nielsen, executive vice president of product support and chief quality officer at Toyota North America, said Toyota is thrilled to see Aisin AW continue to grow in the U.S. and in Texas.
“Since their start in 1969, Aisin AW has become a powerhouse in the automotive transmission market,” Nielsen said. “Over the years, Aisin AW has been a crucial partner for Toyota providing more than 2 million transmissions since our relationship began.”
Aisin AW President Kazuhisa Ozaki said the new plant is necessary for introducing local production in North America. The plant will produce automatic transmissions for Toyota’s trucks and hybrids built in San Antonio.
Toyota’s choice of San Antonio to invest millions in plant upgrades is what opened doors for other suppliers to move into the region, said Jenna Saucedo Herrera, president and CEO of the San Antonio Economic Development Foundation.
“The closer these operations get to the plant, the lower the cost per vehicle, so it makes it more economical, more sustainable,” she said. “Aisin is a globally competitive manufacturer in their own right. Their decision to relocate within our region, here in Cibolo, is going to send a strong signal to other manufacturers looking to be competitive in North America. This is a big deal for us.”
AW Texas purchased the land, located in a reinvestment zone designated by the Cibolo City Council, from the Guadalupe Valley Development Corporation (GVDC), which is part of the local energy cooperative GVEC.
Darren Schauer, general manager and CEO of GVEC, said the board of directors envisioned such a partnership when it invested in the land in 2013.
“It was our vision that if we found the right partner to move into this location that we could then attract the necessary infrastructure to serve the needs of this new partner … and this entire I-10 corridor,” Schauer said. “We could not have found a better partner than Aisin AW to fulfill that vision and help us be where we are today.”
Both the City of Cibolo and Guadalupe County also partnered, for the first time, in attracting Aisin AW to the area. In July, City and County leaders approved an economic development incentive package for AW Texas that included tax abatements and infrastructure improvements as well as a Chapter 380 Economic Development Agreement.
The 20-year agreement with the City of Cibolo is valued at $9.6 million while the County’s agreement is worth $13 million.
The project is expected to bring a $36 million payroll to Cibolo and deliver an annual net benefit of $3.7 million to the city and $4.5 million to the county in sales and property taxes.
For a company the size of Aisin AW to come to a city the size of Cibolo is transformative for the region and the state, said Robert Allen, president and CEO of the Texas Economic Development Corporation.
Founded in 1969 in Aichi, Japan, Aisin AW is a $234 million subsidiary of Aisin Group and has 35,000 employees. Cibolo is a 32-square-mile town of about 31,000.
“This is a concrete example of a successful pursuit,” Allen said. “We think this is just the beginning of a very long and very fruitful relationship. It’s not the end, it’s the beginning.”
The $400 million AW Texas plant in Cibolo opened Friday, celebrated througha small reception attended by local city officials, leadership from Toyota and Aisin, which owns and operates the plant, and employees.
The grand opening for the plant, which will produce automatic and hybrid vehicle transmissions and supply Toyota’s nearby plant, was kept small because of rising COVID-19 cases.
Moritaka Yoshida, president of Aisin Corporation, was supposed to attend the event in person, but instead broadcast a video message to attendants from the company’s headquarters in Japan.
“While I normally would have joined you to celebrate this new plant together, I am doing my second best with this video message,” he said. “I want to express my sincere appreciation to all who made this day possible, including the members of the state of Texas and city of Cibolo.”
Yoshida called the factory a “concept and a plant of the future,” and said the company hopes to continue to expand it with an eye toward advances in vehicle technology.
Aisin expects the plant to employ up to 500 in the near future, and more than 900 as it expands. It already employs roughly 400, a representative for the company confirmed.
Aisin is the world’s largest manufacturer of automatic transmissions in the world, and has a payroll of more than 120,000 spread across 216 consolidated companies.
Rey Chavez, president of San Antonio Manufacturers Association, said the AW Texas plant is a prime example of the growing trend of manufacturers setting up shop in Texas — particularly vehicle manufacturers, in the Alamo region.
“Everyone is seeing that there’s a workforce they can rely on, and a business-friendly environment,” he said. The presence of Toyota’s large-scale plant, which produces Tacomas and Tundras, is also a major draw.
Toyota’s truck assembly plant on San Antonio’s South Side has steadily expanded since opening nearly two decades ago, and is still in the midst of a $391 million expansion announced in 2019.
Later this year, Continental Structural Plastics, a company that produces composite vehicle components, is set to open its $700 million manufacturing facility in Seguin.
Truck manufacturer Navistar is set to open its $275 million plant on the city’s South Side in 2022. Engineers at that plant will support the company’s work developing self-driving, internet-connected and electric vehicles.
Most of these plants have enjoyed generous tax relief packages from local municipalities. The same is true for the AW Texas plant, which is Aisin’s third in the United States and first in Texas.
The plant, located on a 159-acre property purchased from the local energy cooperative, received an incentive package from the city of Cibolo and Guadalupe County worth a total of $22.6 million over the next 20 years. An economic impact study done at the time estimated that the AW Texas plant would generate sales and property taxes worth an estimated $3.7 million to the city and $4.5 million to the county.
Friday’s opening, though scaled back, still had attendees participate in a traditional ribbon cutting and a short tour of the factory, arepresentative with marketing firm KGB Texas confirmed.
The small size of the opening contrasted with the large celebration in November 2019 that marked the groundbreaking for the site, which Gov. Greg Abbott attended. Abbott at the time said the plant “puts Guadalupe County and Cibolo on the map,” and would lead to “massive development” in the surrounding region.
AW Texas Inc. Breaks Ground on $400 Million High-Tech Transmission Plant
CIBOLO, TX—AW Texas Inc. broke ground Monday on a 159-acre automatic transmission plant to be built here. Upon completion, the new plant will provide capital investments up to $400 million and bring approximately 900 new jobs to the area over the next five years.
AW Texas is a subsidiary of Aisin AW Co., Ltd., and a leading manufacturer of transmissions around the world. This plant will be the third transmission plant of the Aisin Group in the United States and will bring approximately 900 new jobs to the area over the next five years.
Production of automatic transmissions at the plant is scheduled to begin September 2021, enhancing the state’s already strong reputation as a leader in manufacturing. The project is a result of a collaborative effort between the City of Cibolo, Guadalupe County, Guadalupe Valley Electric Cooperative (GVEC), the San Antonio Economic Development Foundation, and the State of Texas.
Manufacturing has an estimated $40 billion economic impact on the region and automotive manufacturing employs nearly 43,000 people across Texas. The growth in the industry will continue to have a positive impact on regional and state-wide economies, bringing high-tech jobs to the area and elevating workforce skills.
Aw texas aisin
Sep. 18, 2019
Aisin AW Co., Ltd. (hereinafter, "AW") decide to locate a new production base in the U.S., which was announced in April 2019, in the City of Cibolo, Texas.
AW, based in Anjo City, Aichi was founded and started business in 1969. Ever since then, it has developed as a leading manufacturer of transmissions adopted by car manufacturers around the world.
The Aisin Group's auto parts business in the U.S. began with Aisin U.S.A. Mfg., Inc. founded in the state of Indiana in 1988, and has expanded to operate 32 companies, creating jobs for around 12,600 people, with sales reaching approximately 574 billion yen today.
At the new production site in the City of Cibolo, Texas, AW established AW Texas, Inc. (hereinafter, "AW Texas".) AW Texas will start production of automatic transmissions.
In line with the new plant construction, capital investments up to $400 million and new employment of approximately 900 people are planned in five years up to 2023.
We are advancing the preparations toward the commencement of production in September 2021.
"The Lone Star State continues to build on its reputation as a manufacturing powerhouse thanks to investments from innovative companies like Toyota and Aisin AW," said Governor Greg Abbott. "Their combined new investment of nearly $800 million in the San Antonio area is a testament to Texas' unrivaled workforce and commitment to creating an environment where businesses can thrive free from the heavy hand of government regulation and over-taxation. I am grateful to Toyota and Aisin AW for bringing more jobs to the Lone Star State and I look forward to growing our already strong partnership."
"This project means more than the great jobs it will bring. Welcoming Aisin AW improves business conditions for the whole region's manufacturing sector. I am so proud of our regional team: The City of Cibolo, Guadalupe County, GVEC, The San Antonio Economic Development Foundation, and the State of Texas worked together to bring this game-changing, global project home to South Central Texas. We look forward to long and fruitful relationship with the company." said Robert T. Herrera, City Manager of Cibolo.
AW Texas will be the third transmission plant of the Aisin Group. The Group's first plant in the U.S. is located in the state of North Carolina. (AW North Carolina, Inc. founded in 1998)
We are grateful to the local Cibolo municipal government and Economic Development Corporation for their great cooperation for our launch of business in Texas, and to other local related parties for their warm welcome. We are determined to establish long and fruitful business relationship with this city of Cibolo, Texas and will strive to make a local, beloved company.
The State of Texas has many car manufacturers and auto parts manufactures, creating car-related jobs for approximately 43,000 people.
AW will contribute to the further development of this rapidly growing auto industry in Texas.
Additionally, in line with its launch of business in Texas, AW has newly established AW North America, Inc. as the managing company of its production plants in the U.S., AW Texas, Inc. and AW North Carolina, Inc.
Outlines of the companies are as follows:
AW Texas, Inc.
AW TEXAS, INC.
City of Cibolo, Texas
May 30, 2019
USD 10 million
100% by AW North America
President Satoru Kasuya (now Managing Officer of AW)
159 acres (approx. 643,000 m2)
Production and sale of transmissions
Approx. 200,000 units/year
September 2021 scheduled
Number of employees
Approx. 900 (as of the end of 2023)
AW North America, Inc.
AW NORTH AMERICA, INC.
City of Durham, North Carolina
(Inside the AW North Carolina Office)
May 28, 2019
USD 10 million
Aisin AW (100%)
President Susumu Kasai
(Also as President of AW North Carolina)
Managing US production companies
Reference: Outline of AW North Carolina, Inc.
AW NORTH CAROLINA, INC.
City of Durham, North Carolina
November 3, 1998
USD 75 million
100% by Aisin AW
President Susumu Kasai
(Also as President of AW North America)
123 acres (approx. 497,000 m2)
Production and sale of transmissions
Approx. 500,000 units/year
Number of employees
Approx. 1,660 (as of March 31, 2019)
Area Development News Desk
Related ResearchAisin AW, a Japan-based corporation that develops and produces components and systems for the automotive industry and manufactures auto transmission parts for Toyota vehicles, plans to build a manufacturing plant 25 miles northeast of San Antonio in Cibolo, Texas.
According to Governor Greg Abbott’s Office, in September, Aisin AW and Toyota announced a combined $800 million investment in Texas, with Aisin investing $400 million in its future facility in Cibolo, which will support 900 new jobs. "There is no label more powerful than 'Made in Texas' and we are proving that once again with this new facility," said Governor Abbott.
"I was honored to meet with Aisin executives during my economic development trip to Japan to discuss this investment, as well as our shared commitment to strengthening this partnership. Working together, we will continue to grow the Aisin brand in Texas, create more jobs, and expand economic prosperity throughout the Lone Star State," he added.
Aisin Seiki Co, Ltd. is. Aisin AW, a brand of the the Aisin Seiki company, was established in 1969 and is headquartered near Nagoya, Japan. The company develops, manufactures, and distributes automatic transmissions, hybrid systems, car navigation systems, and other automotive parts.
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