GM to Produce HUMMER H3 at Shreveport Plant


PHOTO (select to view enlarged photo)

BATON ROUGE, La.--Oct. 27, 2004--Governor Kathleen Babineaux Blanco today hailed General Motors' selection of Shreveport for its new HUMMER H3 product line, Louisiana's third major manufacturing announcement in the last three months.

To accommodate its newest line of trucks, GM will invest approximately $250 million to produce the H3, bringing the company's recent investments in the plant to $1 billion.

"These types of investments happen when you combine a modern facility with the nation's most productive workforce. The nation's companies are changing their view of the new economic climate in Louisiana," said Louisiana Governor Kathleen Blanco. "We value GM's commitment to northwest Louisiana."

"GM's investment in Shreveport will help grow the economy while helping to build job security for our highly skilled workforce," said Joe Spielman, Vice President and General Manager of Vehicle Manufacturing.

Originally built in 1981, GM's manufacturing plant in Shreveport built the S-10 series of Chevrolet and GMC trucks. The facility added two more lines in 2001 with the Colorado and Canyon truck lines.

The H3 line is a new, smaller version of the highly successful HUMMER model. Workers at the GM plant in Shreveport will begin construction of this model in mid 2005 with the first H3s arriving in retail outlets shortly thereafter.

In addition to the GM plant, northwest Louisiana has become a center for automotive Tier One suppliers, 18 independent companies established to service the GM plant and with the capacity to service others.

"GM's incredible workforce was also a factor in expanding in Shreveport again," Louisiana Economic Development Secretary Michael J. Olivier said. "The combination of our productive workforce and the transportation and supplier infrastructure in place in and around northwest Louisiana allows GM to produce the H3 and its other lines efficiently and cost effectively."

To accommodate H3 production, the plant required an additional 296,000 square feet of manufacturing space. In addition to construction jobs, the new line for H3 production will add more than 300 jobs to the approximately 3,200 currently working for GM in Shreveport.

"Jobs are what we are all about and that's why I'm keeping economic development as my top priority," Governor Blanco added. "This is the third major economic development win for Louisiana in the last quarter. I'm going to keep working for more projects like this. We will keep spreading the word that Louisiana is open for business."

With this new project, General Motors will have invested $1 billion in the Shreveport facility since its initial construction, making it one of the single largest manufacturing investments in the state.

In June, Union Tank Car announced that it would build a new $100 million dollar facility in Alexandria, creating 850 new jobs. In September, Roy O. Martin Lumber announced that it would build a new, $185 million oriented strand board plant (OSB) in central Louisiana's Allen Parish and open a $38.5 million dry veneer plant northwest of Alexandria, La. The new Martin facilities are expected to employ a total of 215 people.

Both Union Tank Car and Roy O. Martin Lumber had initially planned these new facilities for other states. Louisiana's economic development team, led by Governor Blanco and Secretary Olivier were able to redirect these investments to Louisiana.

Governor Blanco, Secretary Olivier and a group of Louisiana business leaders will take to the road to promote Louisiana as a viable, successful place for business. On Nov. 8, 2004 and 9, this group will travel to the CORENET Global Summit in San Antonio to meet with hundreds of corporate real estate executives, business development officers and site selectors.

"Louisiana has the momentum and now the track record for pursuing and securing major projects like the H3 and Union Tank Car, the largest heavy manufacturing project launched this summer in the U.S.," said Secretary Olivier.

For more information about expanding or relocating a business in Louisiana, contact Louisiana Economic Development at 225.342.3000.

NOTICE TO MEDIA:

Louisiana Economic Development will make highlights of the announcement available via satellite between 3:30 p.m. and 4 p.m., central daylight time (4:30 p.m. - 5 p.m., eastern daylight time). The satellite coordinates are:

GALAXY 3 SATELLITE
C-BAND ANALOG
TRANSPONDER: C-6
DOWNLINK FREQUENCY: 3820 mHz - Vertical
TECHNICAL CONTACT NUMBER: (318) 423-7286

Media may also download high resolution design photos of the H3 at the following website address: http://media.gm.com/servlet/com.gm.mol.auth.MOLogon?key=04anh

Simply click on the link and use your existing GM Media OnLine ID and password to gain access. If you have trouble gaining access to the site, please call the GM Service Bureau at 800-875-7562.

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