August 26, 2013 12:17
Hyundai Motor's parts-making subsidiary Hyundai Dymos will build a production plant in the U.S. state of Georgia, where affiliate Kia already operates a car factory.
The announcement follows a visit to Korea by Georgia Governor Nathan Deal last week where he met group chairman Chung Mong-koo.
Hyundai on Friday said it will invest up to US$35 million in the car parts plant in West Point within the next two years. It will employ around 350 people.
Kia built its car plant in West Point in 2009 with an annual production capacity of 300,000 vehicles. Hyundai has its own automotive plant in neighboring Alabama with the same output capacity.
Georgia and Alabama have been jostling to attract additional plants from the group. "The proposal offered by the city included various support measures like construction of a railway to transport Dymos components," a Hyundai staffer said.
The deal must be authorized by county officials, but Hyundai is optimistic that it will get the green light.
Hyundai’s Alabama plant employs 3,300 people and Kia's another 3,000. Other Hyundai affiliates that built plants in the U.S. include another parts maker, Hyundai Mobis, Hyundai Powertech and Hyundai Hysco. Dymos makes transmissions and seats.
A total of 29 subcontractors of the Hyundai subsidiaries have also set up plants in Alabama and Georgia, employing around 14,000 workers. In total, Hyundai and its subcontractors have created more than 20,000 jobs in the U.S.
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