Story reprint courtesy of The Cullman Times.
Photos by Rich Partain, Cullman County Economic Development

Gov. Bob Riley said at a groundbreaking ceremony Thursday that the expansion of the Rehau plant in Cullman is a prime example of Alabama's economic growth.

"I want you to understand how much Alabama has changed from 10 years ago," Riley said. "When we said we were going to build high-class auto plants in the state of Alabama, remember what the comment was? 'You're going to build what, where?' We don't hear that anymore."

Rehau announced on Jan. 4 it will expand its Cullman operation with a $20 million investment, adding up to 100 jobs in four years. A new, 200,000 square-foot facility is being built adjacent to the existing plant to produce cross-linked polyethylene piping, known as PEX, a flexible tubing used in plumbing and other applications.

Plant manager Albert von Pelser said the PEX facility will be operating within a year. Rehau produces some PEX already at its Cullman plant, which is focused on providing plastic parts to the automotive industry.

In addition to Riley, those attending the groundbreaking ceremony included Rehau NA CEO Kathleen Saylor, State Reps. Neal Morrison and Jeremy Oden, all three Cullman County commissioners, members of the Cullman City Council and officials from Cullman's city and county economic development groups and the Chamber of Commerce.

Riley said Cullman's economic development agencies were "one of the best economic development groups in Alabama, if not America."

"The reason we're here today is the people of Alabama, because of what the employees have produced over the last 10 years," Riley said. "Alabama today is on a roll. Alabama has probably the most diverse economy of any economy in the Southeast if not the United States. ... We've made the transition from low-wage, low-skill jobs into the computer world and the 21st century of high technology."

The governor also noted Rehau's close partnership with Wallace State Community College, which educates and trains many Rehau employees.

"It's critical we have partners like Wallace State," Riley said. "We've got to make sure (workers') skills are up to the quality demanded by national and international employers."

The groundbreaking was Riley's second visit to Cullman County this week. Monday, Riley toured Vinemont High School, promoting a plan to spend $500 million on improvements to school facilities.

Saylor, head of Rehau's North American operations, said while the Cullman plant, built in 1994, was the youngest of Rehau's North American factories, it is "also the most sophisticated, in terms of product development and technology."

The decision to expand in Cullman was driven not only by the existing technology and knowledge for PEX production, but also the relationship Rehau has with Wallace State and city and county government, Saylor said.

Eddie Canaday, chairman of the city industrial development board, said 75 to 80 percent of all jobs are created by the expansion of existing industry. Cullman was No. 1 in the state in new and expanding industry last year, he said.