CHICAGO KSM Castings Group GmbH plans to open a new manufacturing facility in Shelby, N.C., to meet growing demand in the United States.
The operation is slated to be up and running in early 2014, with hiring starting in late 2013, according to the Hildesheim, Germany-based company, owned by Chinese wheel manufacturer Citic Dicastal Co. Ltd.
KSM is expected to create 189 jobs in North Carolina and invest more than $45 million in the facility by the end of 2018, the office of state Gov. Pat McCrory said Feb. 1.
The 110,000-sqaure-foot plant is expected to include eight to 10 pressure die casting machines, the governors office said. It is expected to make fully machined transmission, engine and steering parts. Future expansions could include the production of gearbox housings, as well as body and chassis applications, the office said.
"My administration will work with businesses like KSM Castings to help them grow and expand jobs," McCrory said in a statement. "North Carolina can be a leader in manufacturing once again."
The new plant, which will supply existing and new customers, is part of KSMs strategy to expand its global presence and supply customers from a local base, chief executive officer Frank Boshoff said in a statement. It also comes as stricter U.S. emissions regulations boost demand for lightweight castings, he said.
"The technology expertise provided by KSM Castings and the availability of a skilled manufacturing work force in an emerging automotive cluster make a perfect match," Boshoff said.
KSM operates six plants in Germany, the Czech Republic and China and has 2,900 employees. Its customers include Volkswagen AG, Wolfsburg, Germany; Daimler AG, Stuttgart, Germany; and Benteler AG, Salzburg, Austria.
Citic Dicastal has owned KSM since 2011.