April 2006

WEB EXCLUSIVE

Auto Part Maker Moves Manufacturing from Overseas to California

In a reversal of the offshore production trend, Central Spring, Inc. will be moving its manufacturing of coil and leaf springs from Japan and Indonesia to San Joaquin County, CA. Central Spring, Inc. will be supplying the New United Motors plant (NUMMI) in Fremont, CA, joining numerous other NUMMI suppliers in San Joaquin County. This move is a direct result of Governor Schwarzenegger’s marketing journey to Japan last year and will encompass an expansion of the company’s manufacturing capacities.

Central Spring, Inc. President & CEO M. Najeeb says they will be having a grand opening on May 11 in Stockton. Central Spring, Inc.’s parent corporation is Chuo Spring, Ltd., a Toyota Group company, based in Japan. Chuo Spring, Ltd., established in 1948, had annual 2005 sales of $760 million.

Central Spring will initially be producing coil springs for NUMMI trucks and Toyota Motor Manufacturing Baja, CA (TMBC), eventually expanding production to include leaf springs and other automotive parts. The company says they will begin production in July and anticipate manufacturing approximately 55,000 pieces of the hot-formed coil springs a month. The new 104,000 square foot facility, representing a $16 million dollar investment, is on Boeing Way, north of the Stockton Metropolitan Airport, in the Stockton Airport Business Center, a Buzz Oates Companies development.

The company plans to hire 20 people initially and expand to 50-75 employees within five years. They have hired Roek Construction of Stockton as the general contractor for facility improvements. Collins Electrical Company, Inc. also from Stockton, is making the electrical upgrades.

Najeeb says the company selected Stockton because of its convenient proximity to the Bay Area and the benefits of the Stockton-San Joaquin Enterprise Zone. He emphasized that an important factor was the ease of doing business in the community.

“We felt very welcomed and we were fortunate to come in contact with the San Joaquin Partnership,” says Najeeb. “The Partnership’s established relationships with local officials has been instrumental in bringing this project to fruition.”

The San Joaquin Partnership, a private, non-profit economic development corporation, assisted Central Spring, Inc. with their site selection, incentives analysis and permit processing.

Partnership President & CEO Michael E. Locke agreed with Najeeb in regards to the importance of the Stockton – San Joaquin Enterprise Zone as a significant factor in Central Spring decision to locate there.

He adds that Central Spring’s investment continues to diversify the growing number of light manufacturers.

“We are pleased to see another NUMMI supplier locate in Stockton, joining five other suppliers in San Joaquin County. Central Spring is a major addition to the cluster of automotive-related manufacturers and parts distributors,” says Locke. “And the fact that they are bringing their manufacturing onshore instead of offshore is testimony that companies can still do business in California.”