< Previous24 JULY 2024 SITE SELECTION Mover Program Legislation Helps Brazil’s Automotive Sector Move Right Along S outh America, and more specifically Brazil, did not become one of the world’s top automotive producers by chance. International market access, lower labor costs, established supply chains and government incentives represent just a few factors that have led automotive giants such as Honda, Stellantis, General Motors, Toyota and Volkswagen to the continent. According to a report by Mordor Intelligence, the South American automotive market, largely supported by activity in Brazil, Argentina and Chile, is expected to be worth $24.88 billion in 2024, scaling to nearly $37 billion by 2029. This jump can be attributed to growth within the EV sector, which industry leaders have put at the top of their agendas. Great Wall Motors Pushes Forward The Brazilian Senate approved its Mover Program in June 2024. This program centers around green mobility and innovation for the country’s automotive industry, aiming to promote EV and hybrid manufacturing. Mover creates the framework for Brazil officials to create incentives and a national fund for development of infrastructure for automakers over the next four years. Last May, China-based automotive manufacturer Great Wall Motors announced plans to open a new factory dedicated to EVs, hybrid and hydrogen-fueled vehicles. The project would take place at the former Mercedez-Benz manufacturing facility, which Great Wall Motors acquired in 2021. In May 2024, the plant was to begin production with a capacity of 100,000 EVs per year and 2,400 new jobs at the Iracemápolis site in the state of São Paulo, Brazil. When the anticipated opening date approached, the company pushed back the plant’s opening to later in 2024. This move was in response to the return of the import tax on EV and hybrid vehicles and the potential impact of the Mover Program, according to the company. Once operational, Great Wall Motors will begin production with an SUV from its Haval line, later moving to manufacture a new electric pickup truck. Stellantis Goes Hybrid With $5.9 billion in tow, Stellantis marked its largest investment to date in South America in March 2024 at its site in Betim, Brazil. Fresh funding will support a planned 40 new products, integration and production of decarbonization technologies and plenty of new jobs. “This announcement solidifies our trust and commitment in the future of the South American automotive industry and is a response to the favorable business environment here,” said Stellantis CEO Carlos Tavares. “As a critical part of our ‘third engine’ growth strategy, South America will take a leading role in accelerating the decarbonization of mobility together with our employees, our supply chain network and our partners.” The site will gain new Bio-Hybrid technologies — Bio-Hybrid electrified dual-clutch transmissions, Bio-Hybrid Plug-In and Battery Electric Vehicle (BEV) — that will be used to manufacture a number of Stellantis models by the end of this year, including a new EV. This move looks to boost the company’s role in Brazil, where it currently holds 31% of the market share. by ALEXIS ELMORE alexis.elmore@siteselection.com SOUTH AMERICA Stellantis’ Fiat brand pioneered the use of the company’s bio-fuel engine technology in Brazil. Photo courtesy of StellantisNORTH AMERICAN REPORTS 28 JULY 2024 SITE SELECTION Microsoft Rolls Into the Hoosier State T he northern Indiana city of La Porte has been selected for Microsoft’s latest data center investment. The $1 billion facility will occupy 489 acres of the Radius Industrial Park and will create 200 new jobs by 2032. Construction of the 245,000-sq.-ft data center will begin once design, planning and permitting for the site are complete in late 2024. Microsoft’s project is supported by incentives from the city and the Northern Indiana Public Service company, in addition to a 35-year data center tax credit from the Indiana Economic Development Corporation. Chips and Rockets in the Land of Enchantment I n June 2024, the Biden-Harris Administration announced that New Mexico would be the recipient of a $23.9 million award through the CHIPS and Science Act to modernize the former SolAero manufacturing facility in Albuquerque. The Rocket Lab investment will expand the facility and increase semiconductor production by 50% by 2027. Specializing in manufacturing of radiation-resistant compound semiconductors called space-grade solar cells, this facility is vital to current and future U.S. space programs. Once the project is complete the facility will add an additional 100 jobs. Rocket Lab will open access to their equipment and expertise, in addition to sponsoring internship opportunities, to non-profi t organization New Space New Mexico to drive innovation within the state. Prepared For Growth T oyota’s largest engine manufacturing plant in North America is set for more growth. The Toyota Alabama site in Huntsville has operated for 21 years and this $282 million expansion brings Toyota’s total investment there to over $1.7 billion. Expansion work will add a number of new production lines at the plant catered toward drivetrain products, creating 350 new jobs. “The new lines will further increase the plant’s fl exibility and reaffi rm Toyota’s commitment to our team and community,” said Toyota Alabama President Jason Puckett. Microsoft’s investment joins three data center projects announced in the state in 2024. Photo: Getty Images Space-grade solar cells made here will be used to power spacecraft and satellites. Photo courtesy of Rocket Lab USA In 2023, this location produced more than 770,000 engines. Photo courtesy of Toyota Alabama by ALEXIS ELMORE alexis.elmore@siteselection.com SITE SELECTION JULY 2024 29 The company plans to begin API production in 2026, while continuing to scale operations until 2028. Photo courtesy of Eli Lilly and Company Indiana Increase from Eli Lilly I n a move to further increase manufacturing capacity for its active pharmaceutical ingredients (API) used to treat chronic diseases, Eli Lilly has announced a $5.3 billion boost to its Lebanon, Indiana, facility investment. This brings a total of $9 billion invested in the state and marks the largest investment toward API manufacturing in the country. The company anticipates the new site, located in the LEAP Research and Innovation District, will aid in meeting the demand for treatments in both diabetes and obesity. Once construction is complete about 900 new direct jobs will be created. A Valuable Micron Supplier Moves In T o support Micron Technology’s $15 billion semiconductor plant in Boise, Idaho, gas company Air Liquide now has plans to move into the region. A $250 million investment, announced last week, will go toward the construction of an industrial gas production facility in Boise. Gas distributed from this site will supply Micron’s operations with gases critical to the fabrication of semiconductors such as ultra-pure nitrogen used in processes such as etching, deposition and dipping. Air Liquide aims to help Micron increase productivity and ensure quality across its operations. The plant is expected to become operational in 2025, creating hundreds of new jobs. Energy Heads North A combined $1.3 billion investment from utilities company AltaGas and infrastructure provider Royal Vopak will establish the 190-acre Ridley Island Energy Export Facility (REEF) in Prince Rupert, British Columbia. The joint venture aims to increase Canada’s role as a leading energy exporter for liquifi ed petroleum gases (LPGs), methanol and other bulk liquids. A breakdown of the investment shows that $875 million goes toward construction of REEF and stationing LPG storage tanks, while $475 million will buildout a dedicated jetty and logistics infrastructure from the site. The main portion of this construction work begins over the next two years, expected to be complete by late 2026. “Prince Rupert, with the shortest shipping distances between North America and Asia, gives the opportunity to drive progress by increasing the trade between Canada and the Asia Pacifi c region,” said Royal Vopak Chairman and CEO Dick Richelle. The JV aims to connect Canada to energy markets in Asia, primarily Japan. Photo courtesy of AltaGas Air Liquide strategically locates near Micron Technology’s new Boise site. Photo courtesy of Micron TechnologyINVESTMENT PROFILE: PFLUGERVILLE, TEXAS THE CRITICAL CONNECTION How a Texas community’s vision is giving new meaning to quality of life. P flugerville’s story is one of humble beginnings. Today, the city is looking to write a new chapter in what quality of life means to a fast-growing community. Nearly 100 years ago, the city was home to just 292 residents who were vital to its robust agricultural era. The industry was supported by a former Missouri-Kansas- Texas Railroad line which passed through town, often bringing new business and growth to the budding community. Growing up here, a young Victor Gonzales, who would later become Pflugerville’s mayor in 2016, found that creativity was the greatest source of entertainment. The Austin suburb home to over 79,000 residents today was a “village,” with resources adequate for its time. A fire, which took out half a block of historical buildings in the city’s downtown in the early 1980s, quickly changed the landscape. Pflugerville adjusted to the needs of businesses in the area, but had not recovered as hoped due to lack of funding. “When I got elected that’s when things really started moving and growing. All of a sudden we ran out of space in the downtown, the City Hall and the Parks and Recreation facility,” says Gonzales. “The first budget for Pflugerville was $2,000 a year. That was probably mostly for spraying mosquitos and maybe fixing a couple potholes,” Gonzales jokes. “Today, we’re in the multimillions of dollars in our annual budget. So, 292 people to almost 100,000 people is kind of a warp speed jump.” The Greater Austin area that includes Pflugerville welcomed the seventh-highest total of new residents in the nation in 2023 (over 50,000), one of four Texas metros in the top 10 in that category. Progressive changes over the years have put Pflugerville in a position to rebuild memories of the historical downtown, while accommodating increased population growth that has introduced an urgent need for new infrastructure. Voter approval for a refreshed Multi- by ALEXIS ELMORE alexis.elmore@siteselection.com 30 JULY 2024 SITE SELECTION This 3-D Model was created as a visual concept of the site, although is not intended as an actual rendering of construction plans. Renderings courtesy of McCann Adams StudiosGenerational Recreation Center was crucial to allowing officials to begin building a vision for a vibrant future. Bridging Old and New Over the course of six years, Pflugerville leadership has worked hand- in-hand with the community to build a new vision, dubbed the Downtown East Project, for life in the city’s downtown district. “Resident feedback has been considered each step of the way for the Downtown East Project,” says Pflugerville Assistant City Manager Emily Barron, “from a resident bond committee that supported the inclusion of a Multi-Generational Recreation Center on the 2020 bond, to purchasing the property and establishing the property as a public-private partnership, to the design elements and programming of the civic features.” Creating a destination of this scale to bring residents together on a daily basis and provide a resource that caters to the health and wellbeing of residents represents one of the most exciting aspects for Barron, who is leading the project. In the area known now as “old downtown,” a recent transformation has taken place as businesses have moved in to remodel and upgrade aging storefronts, including an over $1 million brewpub called Prost Alehouse. In this sense, it was important to both parties that resources like City Hall and the Multi-Generational Recreation Center remain centrally accessible to citizens and not deter activity from newly established businesses. When determining how and where to begin, a vacant 29-acre property adjacent to old downtown, on the corner of Farm- to-Market 685 and Pecan Street, proved ideal to both residents and leadership in revitalizing the area. To ensure that getting between the two locations is seamless, Downtown East’s plans will start with extending old downtown’s Main Street to lead directly into the new site. What’s To Come As of 2024, the Downtown East Project has entered Phase 3 of development, which depends on public design engagement before construction begins in December. Besides the Main Street extension, Phase 1 of construction work at Downtown East will welcome the new City Hall, the Multi-Generational Recreation Center, the Civic Plaza and parking space. The Civic Plaza sits at the heart of Downtown East and creates an open outdoor space featuring a performance area, walking path, a playground, outdoor seating and a garden. Meanwhile, the new 129,000-sq.- ft. recreation center will house a fitness center, an indoor pool, a gymnasium and an indoor turf field. Phases to follow currently include construction of a 100,000-sq.-ft. office building, a hotel, a multifamily mixed- use development and commercial recreation offerings. Both Barron and Mayor Gonzales say the community voiced the need for more commercial opportunities, such as dining and retail options, throughout the process. This keen interest opens a door to boost entrepreneurial activity, largely free of a corporate franchise takeover. “They’re great to have, but that’s not what is going to be in Downtown East,” says Gonzales. “We want more mom- and-pop and entrepreneurial businesses that will bring new energy to downtown and add more presence of our citizens.” City ownership of the property will allow city leaders to take note of what residents want to see and work directly with those businesses to get them established. “We hope that with the unique mix of civic and commercial uses,” says Barron, “coupled with creative programming and placemaking that is being done, this project will become a sought-after destination for residents, businesses and visitors alike.” As project plans push forward there is plenty to look forward to in tomorrow’s Pflugerville for all ages and for generations to come. Not to mention, ample space to cultivate new beginnings. This Investment Profile was prepared under the auspices of the Pflugerville Community Development Corporation. For more information, contact Veronica Ramirez at veronicar@pfdevelopment.com. On the web, go to www.pfdevelopment.com. SITE SELECTION JULY 2024 31 Once complete, Downtown East will feature multifamily mixed-use housing, a hotel, an office building and commercial recreation offerings. Renderings courtesy of McCann Adams Studios32 JULY 2024 SITE SELECTION A decade ago, General Electric selected its engine parts plant in Auburn, Alabama, to lead a deeper plunge into the world of additive manufacturing. Today, D printers installed at the facility produce complex jet engine components from metal powders — a process more effi cient than traditional manufacturing methods. As testament to the Auburn plant’s increasing relevance, it’s been singled out for the largest in a series of hefty investments across states by the newly named GE Aerospace. e $ million Auburn infusion, announced in March, will allow the expansion of D printing for components such as high-pressure turbine airfoils, which the Auburn plant specializes in. “ e investments we announced today will enable Auburn to produce more cutting-edge components needed to meet growing demand in commercial and military aviation,” said site leader Antroine Townes in a statement. In all, GE Aerospace is investing $ million apportioned among of its U.S. facilities ($ million), key domestic suppliers ($ million) and international sites in North America, Europe and India ($ million), in the process creating an expected , jobs. Expansions of GE Aerospace facilities in the U.S. include investments in new machines, inspection equipment, building upgrades, new test cells and safety enhancements. All newly announced facilities spending in the U.S. is going to aerospace plants east of the Mississippi River, including four in North Carolina totaling $ million and three totaling $ million in Dayton, Peebles and Evendale, Ohio — all in the neighborhood of Cincinnati. A $ million investment in engine assembly and testing in Lynn, Massachusetts, is to support the production of U.S. and allied military helicopter and fi ghter jet engines. Investments in suppliers are spread throughout by GARY DAUGHTERS gary.daughters@siteselection.com Aerospace investments dot the U.S. SOARING INTO 2024 AEROSPACE The GE Aerospace jet engine plant in Durham, North Carolina. Photo courtesy of GE AerospaceNext >