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German appliance manufacturer selects Alabama for new manufacturing facility

The German appliance manufacturer Miele has selected Opelika in east Alabama as the location of a major manufacturing facility, Gov. Kay Ivey announced recently.

Located east of Montgomery, the new facility will create more than 150 jobs in its first phase by 2026 and hundreds more when a second phase is completed by 2030.

“Miele is one the world’s most iconic brands, and we’re thrilled to have this great company select Alabama as the home for its first U.S. manufacturing facility,” Ivey said in a statement.

“Miele is a wonderful addition to our state’s business community, and I look forward to the day when its new Opelika facility is turning out first-class ‘Made in USA’ appliances coming from Alabama.”

Founded in 1899, Miele produces high-end domestic appliances and commercial equipment such as vacuum cleaners, washing machines and refrigerators. 

According to the Alabama Department of Commerce, Miele’s total investment into the project is projected to be nearly $393.5 million, and by completion, will create 837 jobs with an average hourly wage of $23. 

In total, the state anticipates awarding the company $43.1 million in economic incentives – $13.6 million in jobs credit, and $29.5 million in investment credit. However, ADOC projects the investment to net the state nearly $141.6 million over a 20-year period, with outgoing ADOC Secretary Greg Canfield championing the company’s decision to locate in Alabama.

“Miele is making a significant investment in Opelika that will not only create several hundred jobs over the next few years but also deliver a massive economic impact for the region,” Canfield said.

In the first phase, Miele will outfit an existing facility in Opelika with the infrastructure to jump start manufacturing, and during the second phase, will construct a new facility, and along with it, create additional jobs.

Miele currently employs around 22,300 employees worldwide, and has eight production plants in Germany, as well as a handful in several other countries including Austria, China and Poland. Opelika was chosen as the site location over locations in Georgia, Tennessee, South Carolina and Mississippi, according to ADOC.

Uwe Brunkhorst, a senior vice president at Miele, said Opelika offered the “best conditions” for its planned facility, as well for future expansions of the plant. Brunkhorst also pointed to the proximity of the site to Auburn University, noting that “this means that there is a good supply of skilled workers, including highly qualified engineers.”

Opelika Mayor Gary Fuller, unsurprisingly, agreed with Brunkhorst, and spoke highly of the decision to locate the plant in his community.

“We are excited to announce the arrival of Miele to our vibrant community. We are committed to fostering innovation, creating high-quality jobs and contributing to the economic growth of our community,” Fuller said.

“Together, we look forward to a future filled with shared success and lasting positive impact.”

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