Teksid Aluminum Foundry Inc., a subsidiary of Fiat Auto S.p.A., will open a new engine castings plant in central Alabama.
The Italian supplier, which has a deepening relationship with the Big 3, intends to build its second U.S. aluminum foundry in Sylacauga, Ala., about 60 miles southeast of Birmingham.
Local officials estimate the new plant will employ 450 people.
Teksid already produces aluminum cylinder heads in Dickson, Tenn., for Ford Motor Co., General Motors and DaimlerChrysler. Over the past decade, the Fiat unit has become one of North America's biggest suppliers of engine castings.
The company also has begun supplying parts for GM's new L850 world engine from Teksid Aluminio de Mexico.
For the past year, Teksid has been working with GM on new casting technologies. One experimental program has Teksid developing an aluminum molding process that uses meat by-products as a binder.