Automotive marketplace growth tasks by two South Korea-primarily based organizations will convey far more than $400 million in investments to Alabama.

In Montgomery, Hyundai Motor Production Alabama (HMMA) will make investments $290 million in assembly plant upgrades as the facility prepares to make the next-technology Santa Fe activity utility. As component of the task, HMMA will devote $190 million to retool and enhance the plant’s production line for the fifth-era Santa Fe SUV, even though the supplemental investment decision will assist output of other cars.

automotive industry Alabama
Gov. Kay Ivey chats with HMMA President and CEO Ernie Kim at a ceremony to announce the automaker’s designs to invest $290M in its Montgomery plant. (Picture: Governor’s Place of work/Hal Yeager)

“Today, the legacy of the Santa Fe carries on with HMMA investing $190 million bucks to put together our assembly plant for the following era of this popular SUV,” reported HMMA President and CEO Ernie Kim mentioned at the job announcement. “An extra $100 million pounds will be invested to guidance ongoing manufacturing of the Tucson SUV and Santa Cruz Activity Experience Motor vehicle.”

HMMA 1st commenced assembling the Santa Fe in 2006, and this will be the very first complete model alter due to the fact 2018. When assembly begins later on this year, the all-new Santa Fe will be part of the Tucson, the Santa Cruz, and each the electrified and gasoline variations of the Genesis GV70 luxurious SUV on HMMA’s assembly line.

“Hyundai’s virtually 4,000 Alabama staff members have been earning some of the maximum awarded autos in The us for virtually two many years, and the production of the entirely re-designed Santa Fe mid-measurement SUV is another enjoyable milestone for the company’s Montgomery manufacturing facility,” mentioned Governor Kay Ivey. “I just cannot wait around to see the remarkable new layout on roads in Alabama and throughout the country.”

Montgomery Mayor Steven L. Reed called HMMA a “vital financial engine” for the city and the state.

“From setting up globe-class merchandise to creating jobs and possibility below in Montgomery, HMMA is a catalyst for the continued growth and improvement of our region,” Reed claimed. “This hottest enlargement is a milestone in our partnership, and we are grateful for their ongoing success in Montgomery.”

This is the most current in a sequence of financial investment initiatives HMMA has introduced at the Alabama plant in the latest years, together with a $300 million undertaking announced last 12 months to get ready for the creation of its to start with electric powered motor vehicles (EV).

automotive industry Alabama
Hyundai Motor Producing Alabama will spend $290 million in its Montgomery plant to aid manufacturing of the subsequent-era Santa Fe SUV. (Graphic: Governor’s Office/Hal Yeager)

 

“Hyundai carries on to exhibit a sturdy dedication to Montgomery, where by it has designed significant-quality vehicles considering the fact that 2005, and to its Alabama workforce, which has been there just about every phase of the way,” claimed Alabama Department of Commerce Secretary Greg Canfield. “This new investment decision will permit HMMA to provide a redesigned Santa Fe SUV to the sector when also powering the automaker’s push for potential expansion in the U.S.”

HMMA’s total financial investment in its Alabama plant will access $3.3 billion when the new undertaking is entire, according to Montgomery Chamber Chairman LaBarron Boone.

Shinhwa Strategies $114M Alabama Expansion

In Auburn, Shinhwa Car Usa Corp. ideas to spend $114 million to broaden its production operation to aid the output of EV components. The expansion challenge will create 50 work opportunities more than the future three many years, and insert a new 170,000-square-foot production setting up on Shinhwa’s campus in Auburn Technological innovation Park West.

The expansion will be Shinhwa’s third due to the fact picking the Alabama metropolis as the web page of its initial U.S. plant in 2019.

“Shinhwa’s consistent development in Auburn demonstrates Alabama, by higher stages of innovation and complex prowess, is getting ready for an evolving future,” said Gov. Ivey. “It’s a testomony to the Auburn area’s workforce that this environment-class enterprise has when yet again decided to launch progress strategies there.”

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Shinhwa’s $114 million progress challenge will generate 50 employment and incorporate a new 170,000-sq.-foot manufacturing developing at the company’s creation web page in Auburn. (Image: Shinhwa)

 

Shinhwa provides aluminum die casted parts for automotive companies. Right after the Auburn facility opened in 2020 adhering to a $42 million financial commitment, it began production drive shafts for HMMA in Montgomery and the Kia plant in West Point, GA. The company has considering that introduced two enlargement initiatives in Auburn, introducing 90 positions and an supplemental financial investment of $148 million to grow output of aluminum sections and meet future requires stemming from EV creation.

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“We are thrilled to be increasing our business however yet again, making new state-of-the-art facilities in Auburn, Alabama, where Shinhwa has a thriving enterprise procedure since 2019,” mentioned Kwi Hyun Lee, chairman of Shinhwa Team. “As 1 of the most progressive industrial producers of aluminum vehicle parts, we are self-confident that the momentum we have realized will proceed to fulfill customers’ expanding desire for significant-quality solutions.”

With this new financial investment job, Shinhwa designs to boost potential by increasing die casting operations and including connected processes that are required to make manage arm, knuckle, carrier and motor housing covers in assist of Hyundai, Kia and other automakers in the U.S. The task will assistance a new deal for EV components.

“Alabama’s vehicle sector is experiencing a important expansion spurt as the marketplace accelerates the changeover towards an electrical long term,” said Canfield. “We seem forward to functioning with Shinhwa to progress its growth ideas and absolutely produce the development probable of its Auburn production procedure.”

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By Tara