Continued growth: REHAU announces $50M expansion
Published 6:34 pm Tuesday, August 31, 2021
Local and state leaders gathered at REHAU Tuesday afternoon to join the manufacturer in celebrating its 25th anniversary of coming to Cullman and in announcing a new $50 million expansion.
Alabama Gov. Kay Ivey was in attendance for the announcement, as well as Alabama Department of Economic and Community Affairs Director Kenneth Boswell, Cullman Mayor Woody Jacobs, Cullman County Commission Chairman Jeff Clemons, representatives from REHAU and other local officials.
REHAU’s newest expansion project will require a total capital investment of $50 million for new production equipment and tooling and involves significant rearrangement within the Cullman facility, and is expected to create 125 new jobs.
Ivey said REHAU recognized 25 years ago that Alabama was a good place to do business, and the company’s decision to move into Cullman has led to several expansions over the years and hundreds of jobs for Cullman County and surrounding areas.
“I certainly come from a rural county and understand how critical jobs are to the continued growth of Alabama, so I am very appreciative of the 125 new jobs this expansion will provide,” she said.
Ivey said REHAU’s expansions and continued investment in the community has also opened the area up for a $700,000 grant from ADECA, with a match from the city and county, to improve two miles of 24th Street that runs in front of REHAU and other industries.
“This is an example of how effectively our state leaders work together to make things happen,” she said.
Ivey said REHAU’s expansion is indicative of the state’s priorities of building a pro-business economy and producing a highly-skilled workforce to work for those businesses.
“Today demonstrates that the Alabama-Germany partnership has never been stronger, and that together our potential for future success is truly unlimited,” she said.
Jacobs said he has been able to watch REHAU grow from a burgeoning industry in the city to one of the area’s largest employers, and that growth has been possible thanks to the teamwork between city, county and state leaders who continue to work to see the area’s industries grow.
“None of this happens without everybody working together,” he said.
Clemons echoed Jacobs about the importance of the county’s governments working towards one goal.
“I am always honored to work with the city and county,” he said. “I think we can do a lot of good things if we just work together.”
While REHAU is celebrating its upcoming expansion of operations, the manufacturer has also spent the month celebrating a quarter-century in Cullman.
Twenty-five years ago, REHAU followed Mercedes-Benz from Germany to the United States, and the company came from the Bavarian town of Rehau to the “almost Bavarian” town of Cullman, REHAU Plant Manager Venki Padmanabhan said.
The plant opened in early 1996 with 30 employees, with a second plant producing PEXa pipe for heating and plumbing applications opening in 2007 and a technical center being added in 2015.
The REHAU Cullman operations have expanded numerous times to the current footprint of about a million square feet with nearly 800 employees.
REHAU was an early partner in building Mercedes’ first SUV in the U.S., and now REHAU’s Cullman plant will be building assemblies for Mercedes’ next generation of SUVs, Padmanabhan said.
He said the company’s previous growth and its upcoming expansion would not have been possible without the support of the city, county and state governments.
“We couldn’t have done any of this without the support of, as the governor likes to say, ‘Sweet Home Alabama,’” he said.