Nissan Selects Canton, Miss., for Vehicle Manufacturing Facility
9 November 2000
Nissan Selects Canton, Miss., for $930 Million Vehicle Manufacturing Facility; 250,000-unit Plant Confirms Nissan's Expansion in North America
JACKSON, Miss., Nov. 9 Nissan today announced it will
build a $930 million manufacturing plant in Madison County, Miss. This marks
Nissan's first significant step toward building lasting profitable growth
under the Nissan Revival Plan (NRP).
"This move would not have been possible without the quick start and strong
performance unleashed by the NRP," Carlos Ghosn, president of Nissan Motor
Co., Ltd., stated at a news conference at the State Capitol in Jackson. Last
week, Nissan released preliminary first half financial results for the fiscal
year ending March 31, 2001, with net income of $1.58 billion (170.2 billion
yen), the best six-month period in a decade.
Construction of the 250,000-unit plant located 15 miles north of Jackson
is scheduled to begin in April of 2001. When fully operational, the plant
will employ up to 4,000 people. Production of the first vehicle is scheduled
to begin in the summer of 2003.
The plant will produce a full-size pickup truck, a full-size sport-utility
vehicle and the next generation Nissan minivan. These all-new vehicles will
enable Nissan to enter the popular full-size truck and SUV segment as well as
enhance its presence in the minivan market in the United States.
"Without this investment, we cannot expand our lineup in North America and
grow our business," Mr. Ghosn added. "Building the right products in the
right markets is a basic ingredient to create a foundation for solid
profitable growth. It will allow us to increase our responsiveness to the
market, decrease our costs and reduce our exposure to currency fluctuations."
"Mississippi is proud to welcome Nissan as a leading corporate citizen,"
said Gov. Ronnie Musgrove. "We look forward to the job opportunities and
positive economic impact that will be created by Nissan, as well as Nissan's
outstanding record of producing high-quality vehicles and supporting state and
local community activities.
"Nissan is a dynamic company with vibrant global presence, one that is
committed to profitable growth," Musgrove added. "We are excited that the
people of Mississippi will play a part in that growth."
The factors that led to the selection of the Mississippi site include an
available, high-quality work force, a good site and infrastructure, a
supportive business climate, and excellent cooperation and commitment from
leaders at the state, local and federal levels.
Nissan's investment for this plant is in addition to the $1 billion
planned in the next four years to expand its engine production capabilities in
Decherd, Tenn., and maximize vehicle production capacity utilization at its
Smyrna, Tenn. plant. The new plant will join existing North American vehicle
manufacturing facilities in Smyrna and Aguascalientes and Cuernavaca, Mexico,
bringing Nissan's capacity in North America to 1.15 million units.
This fiscal year the company is well on track to sell the 1 million units
it has forecast in North America, based on its current lineup.
For the period of fiscal year 2000 though 2002, the U.S. will receive
10 new products of the 22 Nissan has announced globally under the NRP. These
products will come even before the vehicles from this facility begin to hit
the market in 2003. Nissan has decided on this investment, also taking into
consideration its forecast that the U.S. market will soften in the short and
mid-term.
The company commented that the investment for the plant will not change
its commitment to reduce net automotive debt to less than 700 billion yen
($6.54 billion) by FY 2002. In the preliminary financial announcement made
last week, Nissan revealed it was well on target with its plan to retire net
automotive debt. Nissan is working with the state of Mississippi and global
banking partners to optimize the funding structure of the investment.
Nissan's first full-size pickup and SUV and the next-generation minivan
will join a lineup of award-winning vehicles, including the Xterra
sport-utility vehicle, Frontier compact pickup, Frontier Crew Cab and
Pathfinder. Nissan introduced the first compact import truck to North America
in 1959 and has continued to offer innovative products in the compact truck
segment ever since.