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Pierre, S.D. – AKG, a German-based manufacturer of cooling systems and heat exchangers, today celebrated the ribbon cutting of its new 80,000 square foot facility in Mitchell, SD. The opening of the facility in the Mitchell Interstate 90 Industrial Park marks the company’s second U.S. expansion.
“AKG is a world class company that employs more than 2,000 people worldwide,” said Gov. Mike Rounds. “The fact that AKG selected South Dakota as home for its new division shows that South Dakota is one of the best places to do business. South Dakota offers some of the most productive, dedicated and prepared workers the world can offer.”
The state worked closely with the company to ensure that a workforce with the necessary skills was available. The Governor’s Office of Economic Development (GOED) and the South Dakota Department of Labor partnered with the Mitchell Technical Institute and Mitchell Area Development to make sure that South Dakota workers were prepared for AKG’s specialized manufacturing needs.
“We know that to remain competitive in the manufacturing sector, we have to continuously adapt to market conditions, and adopt the latest technologies,” said Rounds. “This is an opportunity for South Dakota to keep our manufacturing sector on the leading edge and competitive in the global marketplace.”
“This is a celebration of foreign direct investment by the German firm AKG into South Dakota,” said Bryan Hisel, executive director of Mitchell Area Development. “We’re very glad they made their multi-million dollar investment in Mitchell.”
Mitchell and the state of South Dakota are bucking national and regional trends by attracting manufacturing jobs like the ones AKG offers. South Dakota manufacturers created 3,200 jobs and injected $275 million in capital investment in 2005. In 2003 and 2004, there were 40 expansions by Mitchell manufacturers, creating 184 jobs and a capital investment of $8.5 million.
“The cooperation between the government of South Dakota and the local authorities is excellent,” said Dr. Bodo Marquardt, managing director of AKG. “AKG hopes that the relationship between South Dakota, Mitchell and AKG will, in the future, bring profit to the state, the people and our company,” he concluded.
Dieter Reichel, senior consultant for AKG, agreed that South Dakota’s response time and accessibility made it stand out from other sites. “I can not say enough good things about the state and the community of Mitchell. When I asked the state for information, it never took longer than 12 hours to receive that information,” he said.
“The company anticipates its total capital investment will be in excess of $7 million,” said Jafar Karim, director of the GOED. “This marks even more progress for the state’s 2010 Initiative goal of increasing the gross state product to $10 billion.”
AKG currently has 11 manufacturing facilities located around the world. It first expanded to the United States in 1981 when it built a plant in Mebane, North Carolina.
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