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FEUER Powertrain GMBH & CO. KG: Powertrain Manufacturer Chooses Mississippi for Site of First U.S.-based Plant

Posted February 1, 2015 in Case Studies

German crankshaft manufacturer builds $140 million, 156,600-square-foot

manufacturing plant in Tunica; project to create 300 jobs over five years;

Mississippi’s international appeal to businesses grows.

FEUER Powertrain GmbH & Co. chose Mississippi for its first U.S.-based plant outside of its home in Nordhausen, Germany. FEUER Powertrain North America, Inc. manufactures ready-for-installation crankshafts for diesel and gasoline automobiles, trucks and heavy machinery for manufacturers including General Motors, Ford Motor Co., BMW, Chrysler, Ferrari and Cummins, Inc. The initial project slated for the Tunica plant was a 5.0L V8 diesel crankshaft for the new generation of the Nissan Titan pickup truck, manufactured in Canton, Mississippi. FEUER produces about 1 million crankshafts a year. Since FEUER was founded in 2003, it has invested more than $250 million in five plants in Nordhausen, where the company employs more than 500 workers. The new plant will have the flexibility to produce crankshafts for a range of engines from three to 12 cylinders.

Business Challenge

The process of bringing FEUER to Mississippi was a complex and lengthy one that took almost two years. Not only was FEUER being wooed by other states, but it also had concerns about power supply reliability. FEUER had experienced only one outage in 10 years at its plant in Nordhausen, Germany, so it was imperative that Entergy Mississippi’s business development team build a case for our reliability.

This project also had long-term implications for future investments from German-based companies in the Entergy service territory, and the Entergy team worked closely with the Mississippi Development Authority and the Tunica County Economic Development Foundation to bring this company to Mississippi. FEUER Powertrain North America is located near Schulz Xtruded Products, a German manufacturer specializing in a complete range of seamless pipes for oil and gas companies, power and nuclear power plants, chemical and petrochemical companies, and aerospace companies.

Collaborating with Entergy

To overcome the reliability concerns raised by the company, Entergy Mississippi agreed to provide an alternate feed to the FEUER site from an existing substation and to meet certain construction standards commonly used in Germany.

Another strong sales point was our membership in Midcontinent Independent System Operator, Inc. (MISO), an essential link in the reliability of our region’s interconnected transmission network.

In addition, Entergy Mississippi agreed to pursue a special agreement with the Mississippi Public Service Commission on FEUER’s behalf. As part of this agreement, Entergy Mississippi developed a site-specific price to meet FEUER’s requirements.

Business Solution

Entergy Mississippi’s ability to overcome FEUER’s concerns regarding reliability has paid off. The 156,600-square-foot manufacturing plant—a $140 million investment—will create 300 jobs over five years for Mississippi. Production is scheduled to begin in the second half of 2015.

FEUER’s investment in Mississippi strengthens its automotive sector and sends a strong signal that Mississippi is a welcoming environment for foreign investments.

Key Industries

Automotive Manufacturing