South Korea-based Tesla supplier has secured the necessary approval for its proposed $28 million automotive component production facility near the American electric vehicle giant’s Gigafactory Texas in Travis County, The Business Journals reported.
Futronic to build $28M facility in Texas
Automotive supplier Futronic USA successfully received the green light from Buda City Council and Hays County to pursue the development of its first-ever American facility.
The Buda City Council reportedly granted Futronic a whopping $600,000 in tax incentives on top of extra subsidies from the Hays County Commissioners Court.
Futronic eyes a 66,000-square-foot facility at 2899 Business Park Drive, approximately just 20 minutes away from Tesla’s Gigafactory Texas. The establishment is reportedly a former Fat Quarter building.
Investment details
Futronic is expected to invest a total of $17 million in its planned production plant in Texas, along with the building purchase of about $11 million.
This major investment will generate up to 350 new high-paying job prospects for the locals.
“Buda has a skilled workforce, with a school district that provides robust CTE (career and technical education) programming, so this is a real asset for not only our economy but for families and future generations.”
Shannon Mumley, Assistant Director of the Buda Economic Development Corp. (BEDC)
Solidifying Tesla’s supply chain
For context, Futronic manufactures actuators, motors, and other controller devices for automakers across the world.
While most of Tesla’s suppliers are under non-disclosure agreements (NDAs), the Greater San Marcos Partnership disclosed that Futronic is one of the Musk-led EV giant’s major component suppliers.
Apart from Futronic, numerous Tesla suppliers have declared intentions to establish new operations in the US. For instance, Piedmont Lithium previously secured the approval for its plans to establish a new lithium mining base in North Carolina.
Futronic’s imminent arrival in Buda City will substantially solidify Tesla’s local supply chain, potentially accelerating the production ramp-up in Giga Texas.
Futronic plans to complete the facility by at least Q3 2024, with production set to start by the end of Q3 2025.
