MONTGOMERY, Ala. (WRBL) – Alabama Governor KAy Ivey announced that the Shinhwa Group plans to build a manufacturing operation in Auburn to service the area’s auto sector.
“Shinhwa’s decision to invest $42 million and create 95 jobs in Auburn is great news for Alabama,” Governor Ivey said. “Alabama has become an important player in a changing automotive industry, and Shinhwa’s plans to open its first U.S. plant in Auburn is proof of our success.”
The state of Alabama hosts a growing automotive industry sector that produces close to 1 million vehicles each year and provides almost 40,000 jobs, according to state officials.
To start things off, Shinhwa will produce the drive shafts for vehicles made by Hyunda Motor Manufacturing Alabama in Montgomery, and Kia Motor Manufacturing Georgia, in West Point, according to Alabama officials. Shinhwa plans to expand to Auburn to provide parts for other manufacturers as well.
“We will start our U.S. project by introducing a highly automated machining process to be followed in the near future with our die casting lines,” said Duk Keun Oh, president of the newly founded entity Shinhwa U.S. Auto Corp. “We are grateful for our collaboration with Seohan in Auburn and see great opportunities for our growth in North America.
Alabama’s Secretary of Commerce, Greg Canfield, hopes the move to Auburn will allow Shinhwa to bring new capabilities and options to the state’s vehicle supply chain, which has reportedly expanded quickly over the last few years.
“Shinhwa is a welcome addition to Alabama’s network of high-caliber auto suppliers,” Canfield said. “I’m confident that Shinhwa will realize major benefits from the technical talents of Alabama’s workforce and the state’s business-friendly environment. Working together, I know we can build a solid future.”