Eurotranciatura USA, LLC

THE PROJECT

In March 2017, AMCREF Community Capital provided $13 million of NMTC financing to Eurotranciatura USA LLC (“Euro USA”). Euro USA is an existing manufacturer of rotor laminations for electrical motors and generators located in rural Paris, TN. The plant is bringing high quality manufacturing jobs to a severely distressed rural community suffering from very high poverty (40.4%), very low incomes (44.86% of the state average), high unemployment (18%) and located in the Delta Regional Authority. Euro USA is an example of onshoring manufacturing operations to the U.S. As a joint venture created by Euro Group of Italy and Kuroda Precision of Japan, Euro USA was founded to manufacture electrical steel laminations in the U.S market, closer to their customers. In 2014, Euro USA acquired the steel lamination division of Tecumseh, located in Paris, TN.  The existing Paris TN facility provided initial operations and cashflow for Euro USA while the company expanded operations into higher value products. The design of steel laminations is critical for efficient electric motors. Euro USA’s highly efficient products help reduce emissions and can be used in hybrid or electric vehicles.

 

COMMUNITY IMPACT

  • Job Creation and Support: Total of 145 FTEs, including 110 retained and 35 created. Euro USA provides average wages over and above the local living wage plus full benefits. Euro USA provides job training via local trade schools and community colleges. Employees stated Euro USA encourages upward mobility.
  • Environmental Benefits: Euro’s products seek to improve the efficiency of electric motors, which use 45% of global electricity. Expansion enables Euro USA to pivot towards higher value, environmentally friendly products for electric vehicle motors and wind turbines. Euro USA’s affiliate is a supplier to Tesla, an innovative electric car manufacturer. Euro USA’s efficient manufacturing process and commitment to recycling ensures minimal waste.
  • Community Support and Impacts: Expected that 100% of FTEs are local hires and 88% of FTEs are accessible to individuals without a college degree. Euro USA partners with University of Tennessee and Tennessee College of Applied Technology to train and recruit from the local labor pool. Facility brings valuable new high quality manufacturing jobs to a rural town suffering from very high poverty (40.4%), very low incomes (44.86% of the state average) and high unemployment (18%).
  • Economic / Catalytic Effects: Euro USA’s success is vital for a town that has seen its industrial base erode in recent decades and therefore received a strong financial package from multiple state and local economic development groups. Local businesses, ranging from freight rail to retail to manufacturing, have benefited immensely from Euro USA’s budding operations.