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JANUARY 2005

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GEORGIA SPOTLIGHT



From Auto Suppliers to Tractors

    Georgia is using these advantages. In 2004, Georgia landed major manufacturing investments from Honda Motor Co., Kubota, LG Chem, Toyo Tire & Rubber, Mohawk Industries, TI Automotive and many others.
      The biggest catch was the $100-million Honda transmission plant in Tallapoosa, in rural Haralson County about 40 miles (64 km.) west of Atlanta. The Japanese automaker announced Nov. 9 that it would build the new plant - its 13th in the U.S. - as part of a $270-million investment that will create 600 jobs in three states.
Georgia Gov. Sonny Perdue listens as Koichi Kondo, president of American Honda Motor Co., Inc., announces the company's new $100-million plant in Tallapoosa.

      Honda Transmission Manufacturing of America Inc. plans to open the 250,000-sq.-ft. (23,225-sq.-m.) Georgia plant in late 2006 and produce 300,000 automatic transmissions a year, primarily for Odyssey minivans assembled in Lincoln, Ala., and sport utility vehicles assembled at Honda's Ohio plant. The project will create 400 jobs in Tallapoosa, a town of about 3,000 people near the Alabama border.
      The company had considered many locations for the plant but settled quickly on Tallapoosa, said Honda spokesman Jeffrey Smith. Honda liked the area's infrastructure and labor force and the site's location. The 300-acre (122-hectare) parcel is just off I-20 and only 60 miles (97 km.) from the Honda assembly plant in Lincoln.
      Georgia pushed hard for the project, sending Gov. Perdue to Japan to meet personally with Honda President and CEO Takeo Fukui and pledging $13.7 million in financial incentives. The package includes tax credits, a grant for buying the land, road improvements and worker training.
      "This new plant will create approximately 400 jobs for Georgians, with the potential to double the number of jobs in years to come," Perdue said in November. "It is a tremendous win for our state that reinforces Georgia's status as a center for the automobile manufacturing industry."
      The project is Honda's second major investment in Georgia. In 1990, American Honda's Power Equipment Division established its national headquarters in Alpharetta.
      "We believe the state of Georgia has what we need to continue our momentum in North America — excellent transportation systems, the necessary infrastructure to support industry and, most importantly, an outstanding community of people," said Koichi Kondo, COO of Honda's North America Region operations and president of American Honda Motor Co. "This powertrain strategy represents the continuation of Honda's 25-year commitment to localize our operations close to the customer here in the U.S., and creates a new level of autonomy for Honda's powertrain production in America."
      Rural northeast Georgia also landed a prized plant when Kubota Manufacturing of America (KMA) announced Oct. 26, 2004, that it would build a 500-employee factory in Jefferson in Jackson County.
AirTran's offices are just one of many instances of facility development related to Hartsfield-Jackson International Airport, the nation's busiest passenger airport and 10th busiest cargo airport.

      Japan's largest manufacturer of tractors and farm equipment established KMA in Gainesville, Ga., in 1988 and has steadily expanded its Peach State operations since. The 400,000-sq.-ft. (37,160-sq.-m.) plant on 88 acres (36 hectares) in Jefferson will be Kubota's fifth facility in Georgia and will produce 70,000 units annually, mostly tractors and backhoes.
      "The success of KMA has been made possible by our employees, so we look forward to continuing to grow with them in our existing and new facilities," said KMA President John Shiraishi.
      The site, about 61 miles (98 km.) northeast of downtown Atlanta, is located in the McClure Industrial Park alongside I-85 and is just 25 miles (40 km.) south of the company's existing plant in Gainesville.
      "In addition to the location's convenience for our employees, it is ideal for product and supplier transportation," Shiraishi said.

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