Last Updated:March 04. 2007 11:00PM
Published: March 05. 2007 3:30AM

Neal Wade, Alabama Development Office director, said Toyota's decision to build a plant in Tupelo, Miss., is good economic news for Alabama because of Tupelo's proximity to northwest and west-central Alabama.



Toyota Motor Corp. recently announced plans to build a $1.3 billion assembly plant near Tupelo that will employ 2,000. Production is expected to start in 2010.



"Having Toyota (in Mississippi) will be good for Alabama … because of the supplier potential," Wade said.



He said the Toyota plant would be seeking suppliers within a 60- to 100-mile radius in Mississippi, Alabama and Tennessee.



"We'll be very aggressive to contact the suppliers to make them aware of potential sites in Alabama," Wade said. "The Shoals will certainly have some opportunities to compete."



North American Lighting, a supplier for Toyota and other automotive manufacturers, will soon begin production in Muscle Shoals.



The Shoals is well situated as a car parts supplier, located within 90 miles from Tupelo, from Spring Hill, Tenn., home to a Saturn manufacturing plant, and from Huntsville, where Toyota has an engine plant.



"For northwest Alabama, it's a good opportunity for us and all of the tri-state area," said Forrest Wright, director of the Shoals Economic Development Authority.



Steve Sewell, of the Economic Development Partnership of Alabama, agreed that having North American Lighting in the Shoals is proof that suppliers are paying attention to the region.



"(NAL is) an example of a company doing business with automotive makers," Sewell said. "That gives the area a project to point to as a demonstration that this is a good location for suppliers."



He said it is important for local supply plants to be supported.



"The first priority for us is to support the automotive makers who are here, to make sure they have everything they need in order to grow their businesses and continue to be successful," Sewell said.



Wade said Interstate 22, a 176-mile corridor that follows U.S. 78 from Memphis to Birmingham, links Tupelo to west Alabama.



"I believe I-22 is going to become one of the top economic corridors," Wade said.



State Rep. Alan Harper, D-Aliceville, an economic developer in Pickens County, said the Toyota announcement would be a boost for west-central Alabama's economy.



"I look at commuting patterns and employee patterns at Mercedes now, and people will drive an hour or more to the job," Harper said. "Also, there will be spin-offs. You could see suppliers."



Having the Toyota plant in Tupelo, Wright said, will "open up all of the area, including ours, to the automotive industry."



Wade said the next step is locating the suppliers and luring them to the area, promoting existing industry, and preparing local leaders to know what to do when potential suppliers visit.



"We'll be working with SEDA (and) other organizations in northwest Alabama to form a partnership, and working with the counties to make sure they're aware of our strategy and infrastructure needs," Wade said.



Kenda Williams can be reached at 740-5720 or kenda.williams@timesdaily.com.



New York Times Media Group Montgomery Bureau Chief Dana Beyerle contributed to this report.