An auto parts plant in Cottondale is expected to close by Dec. 31, eliminating 83 jobs at a facility that received a multimillion-dollar expansion commitment just six years ago. The closure of the International Automotive Components Group North America plant marks a sharp reversal from the growth plans the company touted in 2020.
According to al.com, the Cottondale facility is expected to close by Dec. 31, and will impact 83 workers. The outlet also reports that IAC committed $34.3 million to the Cottondale facility back in 2020, a project that was expected to create 119 jobs at the time. As Plastics News notes in its coverage of the closure, the shutdown comes six years after that expansion was first announced.
The layoffs tied to the closure are scheduled to begin Dec. 31, according to tuscaloosathread.com. The plant was originally planned to produce door panels and overhead systems for original equipment manufacturers, per details reported in 2020 by madeinalabama.com.
A Bigger Expansion Push That Spanned Two Alabama Cities
The Cottondale project wasn't IAC's only Alabama bet in 2020. The same madeinalabama.com report detailed a separate $21.6 million investment planned for the company's Anniston facility on Pappy Dunn Boulevard, in the former Fort McClellan, expected to create 63 jobs. Together, the two projects were part of a larger package: the station's report at the time put the company's combined Alabama investment at more than $55.9 million, expected to create 182 jobs across both sites, according to abc3340.com.
IAC Group is based in Luxembourg, while its North American arm is headquartered in suburban Detroit, according to al.com and Plastics News. The company was founded by billionaire investor Wilbur Ross, Plastics News reports, and the Cottondale closure article was authored by Don Loepp for the outlet's automotive section.
Part of a Wider Pattern of Alabama Layoffs
The Cottondale closure adds to a rough year for the state's workforce. Alabama has seen nearly 2,800 employees affected by mass layoffs and closures so far in 2026, according to al.com's reporting. Federal data tracked by the Federal Reserve Bank of St. Louis separately monitors employment in Alabama's motor vehicle parts manufacturing sector, though no specific figures tied to this closure were included in that dataset.
Donny Jones, CEO of West AlabamaWorks, offered some context on why plants like Cottondale's can open with fanfare and close within a few years. “The auto industry is very dynamic and there is continuous movement within suppliers as products are introduced, phased out, and new ones introduced,” Jones told tuscaloosathread.com. It's a reminder that supplier shakeups are a routine feature of the industry, even when the human toll — in this case, 83 jobs — lands hard on a single Alabama community.
