Global company's major expansion in Knoxville signals Tennessee's energy industry growth
A global renewable energy company is investing millions and creating 90 new jobs in Knoxville as Tennessee increases its reputation as an energy industry stronghold.
Hitachi Zosen Inova USA LLC (HZI USA) will invest $6.6 million to expand operations in the area.
Over the next two years, HZI will relocate its U.S.-based headquarters from Atlanta to Knox County, Tennessee Department of Economic and Community Development commissioner Stuart McWhorter said Wednesday.
The investment and the jobs that come with it will help create an "ecosystem for innovation" in East Tennessee and help the area become more competitive in the global economy, Knox County Mayor Glenn Jacobs said.
“Make no mistake, we talk a lot about manufacturing, and manufacturing is important, (but) innovation is what's driving everything," Jacobs said at a press conference Wednesday. "If we want to compete, if we want to be a player in the global economy, we can, but we're going to have to concentrate on the innovation sector.”
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About the jobs coming to Knox County
The jobs will help HZI expand its footprint in Knox County and triple the number of employees it has in Tennessee.
Officials at the announcement stressed the importance of the quality of the jobs - in areas like engineering, procurement and construction - and the wages.
The deal helps the Knoxville Chamber reach its goal of raising the average wage in the region, said Doug Lawyer, Knoxville Chamber vice president of economic development.
“The Knox County average wage is about $57,000. These jobs are well above six figures,” Lawyer said. "So (they’re) really important.”
“I'm convinced that Knoxville is a great place to live and there's so many people who want to live here. They need jobs,” Knoxville Mayor Indya Kincannon said. “They need to have jobs, high-paying jobs, and a career path.”
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What does the economic opportunity mean for Knoxville?
Economic development leaders said Wednesday they believe the expansion will strengthen Tennessee's relationship with Japan, "our top foreign direct investment partner," McWhorter said in a press release.
Lawyer said Knoxville and Knox County are focusing on growing the clean energy sector, and the investment is “huge” in the effort to do so.
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“To have a company like this that's willing to put design, project management, (headquarter) functions in our town, really validates kind of what's going on in this market,” Lawyer said, adding that the region's innovation assets – Oak Ridge National Laboratory, the Tennessee Valley Authority and the University of Tennessee at Knoxville – help sell it as a destination.
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Why Hitachi chose Knox County
Hitachi Zosen Corporation is based in Japan, and HZI is its renewable energy arm based in Switzerland. The renewable energy arm specializes in converting municipal and agricultural waste into renewable electricity, natural gas and hydrogen.
The $6.6 million investment will primarily go towards leasing the second floor office at 10025 Investment Drive, furnishing the office and hiring and training new employees, according to a Chamber spokesperson.
The parent company employs almost 12,000 people worldwide.
Heath Jones, managing director of HZI USA, said the company chose Knox County for the business climate, skilled workforce and quality of life. Jones also recognized Tennessee's worldwide leadership in the clean energy industry.
This article originally appeared on Knoxville News Sentinel: Tennessee energy industry boosted with investment from Hitachi Zosen
