Tesla Giga Texas Attracts Many Suppliers to Build Manufacturing Facilities in the Region

Eva Fox by Eva Fox September 07, 2021

Tesla Giga Texas Attracts Many Suppliers to Build Manufacturing Facilities in the Region

Photo: @JoeTegtmeyer/Twitter

Tesla Giga Texas has become a huge manufacturing hub that attracts many suppliers from all over the United States. Several suppliers have already begun to locate their manufacturing facilities next to the Californian manufacturer, highlighting Tesla's appeal and ability to develop economies in the regions where its factories are located.

The construction of the Giga Texas shell is nearing completion. A majestic and powerful diamond-shaped building now rises near Austin. The popular Model Y, the coveted Cybertruck, and the long-awaited Semi will be produced here to help fulfill the company's mission to accelerate the transition to sustainable energy. The progress of construction is incredible, as, in just a little over one year, Tesla almost completely built the huge building, and even began test production of the first cars.

To produce vehicles, Tesla will need a variety of components and materials. The most profitable way to supply the manufacturer would be to locate production facilities in relative proximity to Giga Texas. Although the names of the company's suppliers are not publicly disclosed anywhere, some of them are already known. Automotive News has compiled a list of industry-leading Tesla suppliers who have already announced plans to set up new manufacturing facilities in Texas or close to the company's factory.

Plastikon Industries
In mid-June, Austin Business Journal reported that a plastic parts manufacturer has leased nearly 100,000 square feet in the Plum Creek Industrial Center in the suburb of Kyle, about 30 minutes from Tesla's factory. The company uses plastic injection molding to create products for several industries, including automotive and medical. In the automotive field, Plastikon makes molded plastic parts such as steering wheels, mud guards, consoles, seating, braking and railing, according to its website and already supply Tesla's Fremont factory.

Simwon North America Corp.
In mid-June, Austin Business Journal also reported that the company signed a lease for nearly 500,000 square feet off Marketplace Avenue in Kyle, which is also located near Giga Texas. Construction is underway on a manufacturing facility there, which is expected to employ 400 people and be operational by December 2021 or January 2022. Simwon America Corp., a sibling entity, is reportedly a tier one supplier to Tesla's plant in Fremont, making body parts for its electric vehicles.

In early June, it became known that the German auto parts maker is set to open a new manufacturing facility on San Antonio’s East Side, just an hour away from Giga Texas. When the plant is complete, ElringKlinger will produce lightweight auto parts using plastic injection molding. The site will “support ElringKlinger’s supplier relationship with a leading electric car and battery company,” according to city documents.

Saueressig Engineering
In April, it became known that the company was planning to open a facility on the east side of San Antonio, about 80 miles from Giga Texas. Saueressig Engineering was linked to Tesla when it hinted at a major order from an American automobile manufacturer. According to its official website, Saueressig focuses on “special machine construction” for several industries, including the battery sector. Previous reports have suggested that Saueressig could be involved in making machines for Tesla's battery cell production lines for Giga Texas and Giga Berlin.

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Article edited by @SmokeyShorts, you can follow him on Twitter

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