East Side to get Tesla supplier
A German engineering company that does work for electric vehicle maker Tesla plans to open its North American headquarters on the East Side and hire at least 50 workers over the next five years.
It’s an early indicator that Tesla’s planned $1.1 billion plant near Austin could benefit San Antonio, too.
Matthews International Corp.’s Saueressig Engineering facility at 4338 Profit Drive will design, assemble and install equipment for automakers and customers in other industries, including energy storage.
Sources with knowledge of the company identified it as a Tesla supplier, and German trade publication Tesla Mag reported in November that Saueressig installed machinery for producing battery cells at Tesla’s plant in Fremont, Calif. Saueressig also has received orders for Tesla plants in the works in Texas and Germany.
Pittsburgh-based Matthews International and Tesla did not respond to inquiries Thursday about whether the East Side warehouse would support Tesla, which is building its next “Gigafactory” in southeastern Travis County.
The facility is expected to manufacture Tesla’s Model 3 and Model Y vehicles, along with its planned Cybertruck pickup and Tesla Semi, a long-haul commercial truck.
Saueressig is arriving in San Antonio as the automotive industry here gains traction.
Toyota operates a 3,000worker plant on the South Side, and its campus is home to 23 suppliers, which employ an additional 4,000. Japanese car parts-maker Aisin AW — a Toyota supplier — is building a factory in Cibolo, and Navistar International is constructing a plant on the South Side.
Illinois-based Navistar also recently announced it will hire 60 workers to test and validate parts for its electric trucks, in addition to 600 workers it will employ to produce heavy-duty commercial trucks.
“We’re increasing our investment in San Antonio because local and state leaders have created a business climate that supports manufacturing innovation and has attracted a talented workforce,” Navistar President and CEO Persio Lisboa said last month.
San Antonio has a history with Tesla. In 2014, the company considered San Antonio against Reno, Nev., for a plant that would produce batteries for its vehicles. Tesla picked Nevada, which offered a bigger incentive package.
After Tesla founder and CEO Elon Musk named the Austin area as the home of the manufacturer’s next U.S. plant in July, San Antonio officials said the factory could spur an automobile manufacturing corridor between the two cities and bring Tesla suppliers to the region.
“The I-35 corridor anchored by San Antonio and Austin presents a unique opportunity for global innovators to accelerate tech and manufacturing operations,” said Jenna Saucedo-herrera, president and CEO of the San Antonio Economic Development Foundation.
Rey Chavez, president and CEO of the San Antonio Manufacturers Association, sees Matthews International’s facility as a good sign for the area.
“I think this will open up some more stuff for our corridor, especially for this region,” he said of Tesla’s Austin-area plant.
In addition to all-electric cars and trucks, Tesla is looking to develop batteries at its Travis County plant, the Austin-american Statesman reported. The facility would be its first to produce both vehicles and batteries.
Pending local officials’ approval of economic incentives, Matthews International and its landlord plan to spend $9 million on capital improvements at the East Side facility and hire engineers, programmers and technicians.
“This is a significant first step for Matthews to invest and grow in the San Antonio region,” Greg Babe, the company’s chief technology officer, said in the relocation announcement. “Working with individuals across the community, we feel that San Antonio offers an environment for our employees to thrive and our business to serve our growing client base.”
The company is seeking a 10-year, 75 percent tax abatement worth an estimated $234,963, which City Council members will vote on Wednesday. Bexar County is not offering incentives, spokeswoman Monica Ramos said.
Employees at the facility would earn at least $50,000, with an average salary of $73,500, according to city staff. Matthews International would also spend $11,750, or about 5 percent of the estimated abatement, on local internship programs during the first five years of the abatement.
“Matthews International’s long-term investment in San Antonio’s East Side demonstrates that our community’s robust workforce provides an ideal pipeline of talent for new expansion and growth,” said Councilwoman Jada Andrews-sullivan, who represents the area.
The facility is expected to open by late 2021.