Alternator company adding $52.4 million and 200 jobs to Tennessee Plant

Nidec Power announced October 9 it would expand operations in its Lexington, Tennessee alternator factory. According to a company release, the new $52.4 million expansion will add 200 jobs at the plant, which currently employs 400, and increase the factory’s production efficiency and capacity.

Nidec’s Lexington factory builds “advanced alternators” used in generators for data centers, hospitals and similar sites.

Local news site The Tennessee Lookout reported this is the second time the site has been expanded. A previous, $18.7 million expansion in 2018 received $1.8 million in economic development grants from the state. No such state incentives were announced for the latest expansion. The Lookout also reported Nidec will be the county’s second-largest employer, behind the local school district.

Nidec Power Americas, which runs the Lexington plant, is headquartered in Mankato, Minnesota and has 2,000 employees. It is part of Nidec Motion & Energy, a division of St. Louis, Missouri-based Nidec Motor Corporation, which is itself owned by the Kyoto, Japan-based Nidec Corporation. According to a Nidec release, Japan is the largest partner for foreign direct investment with the state of Tennessee.

What people are saying

“What happens in rural Tennessee matters to all Tennesseans, and I am proud to take part in announcing hundreds of new jobs for the families across Henderson County,” said Tennessee Governor Bill Lee. “Nidec’s investment will be transformative for this community, and I am grateful to the company’s leadership and long-term dedication to creating greater opportunity for Tennesseans.”

“Expanding our operations in Lexington underscores our commitment to Henderson County and Tennessee as a whole,” said David Strohsack, President of Nidec Power. “We have a long history of operations in Tennessee, and our global success is built on the quality and commitment of our outstanding team in Lexington. We are honored to invest in this community that has given so much to our company and our customers.”

“Tennessee’s longstanding position as a manufacturing hub, combined with our commitment to fostering a business climate that welcomes international investment, makes our state a premier destination for industrial innovation,” said Tennessee Economic & Community Development Commissioner Stuart C. McWhorter. “We are proud to take part in announcing Nidec’s expansion and look forward to the important role the company will play in advancing Tennessee’s economic growth and global presence.”

Manufacturers investing in Tennessee

Nefab to spend $8.3 million on plastic packaging business with new Tennessee facility
According to Tennessee Governor Bill Lee, the expansion will create 58 new jobs in the county.

Genera invests $340M to expand sustainable packaging manufacturing facility in Tennessee
The facility uses regenerative grasses grown on local farmland to produce more than 2 billion molded fiber packaging pieces annually.

Ultium Cells invests $2.3B to upgrade battery manufacturing facility in Tennessee
The upgraded facility will produce low-cost lithium iron phosphate battery cells by late 2027.

Investing in American manufacturing in 2025 

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