Schaeffler to Invest in New U.S. Automotive Facility

Global motion technology company Schaeffler announces the expansion of its operations in the United States. Particularly, with the addition of a new manufacturing facility focused on producing automotive electric mobility solutions.

Schaeffler is investing over USD 230 million in building the new greenfield manufacturing facility. Thus, representing the company’s commitment to innovation and growth.

State-of-the-Art Production Processes

Strategically located in Dover, Ohio, the company will pour the investments with future expansions until 2032. As part of an agreement with the State of Ohio and JobsOhio, the company will receive incentives via grants and tax credits for these investments that will create 650 jobs in the state. Moreover, these jobs will lead to growth at the company’s current facility in Wooster, Ohio, and the new manufacturing facility in Dover.

File Photo (Image Credit: Schaeffler website)

Construction of the new facility will begin in mid-2024 with an estimated completion in the third quarter of 2025. Once complete, the first phase of the facility will cover 130,000sq.ft of advanced manufacturing space. Particularly, dedicated to electric mobility solutions for the automotive industry. Products manufactured at this site will include electric axles for light and medium-duty vehicles.

“Our new plant will play a pivotal role in shaping our future in the Americas region,” said Marc McGrath, Chief Executive Officer of Schaeffler Americas. “Dedicated to advancing our innovative product offering, our new Dover, Ohio facility will feature state-of-the-art production processes so we can better serve our customers. (At the same time), also adopting sustainable practices, as we continue to pioneer motion,” continued McGrath.

Carbon-Neutral Production

The new facility will produce products with cutting-edge technology, featuring Schaeffler-designed and manufactured tools and equipment. Specifically, the products include electric axles, showcasing Schaeffler’s dedication to delivering sustainable and efficient high-performance solutions for the rapidly evolving electric vehicle market.

Beyond innovation, sustainability is at the core of Schaeffler’s operations. The new facility will incorporate eco-friendly practices, aligning with the company’s commitment to environmental responsibility and to be climate neutral by 2040.

Serving the Dover Community – Committed to Ohio

The new manufacturing facility location is in the proximity of Schaeffler’s customers, major automotive OEMs, strategic suppliers, rail, and access to highways. Moreover, to the company’s Wooster facility, which specializes in the manufacturing of transmission systems. Thus, serving as an innovation hub for automotive electric mobility.

The new facility will create approximately 450 job opportunities by 2032. Positions include manufacturing operators (assembly, welding and CNC), material handlers, manufacturing leaders, engineers, maintenance technicians, tooling technicians, quality professionals and other support staff.

Ambitious Growth Plans in the Americas

Schaeffler has 15 plants in the Americas region and five Research and Development locations, with U.S. manufacturing locations in Ohio, South Carolina, Missouri, and Connecticut and has made sizeable investments in the region over the past decade. The U.S. represents a strategic growth market for the global manufacturer.

Schaeffler chose Dover, Ohio for the new manufacturing facility which will be a cornerstone to the company’s journey toward shaping a sustainable and efficient future in motion technology.

Schaeffler is reviewing if this new facility is a potential candidate for benefits provided under the U.S. Inflation Reduction Act with the goal of further improving the domestic electric vehicle supply chain and local workforce skill sets.

Klaus Rosenfeld, CEO of Schaeffler AG, concluded: “We are convinced that the trend towards more electrification will continue. At the same time, Schaeffler positions to benefit from its technological leadership in hybrid and fuel-efficient technologies, in particular in the US.”