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Hyundai plans $388m expansion at Alabama engine facility

ABR Staff Writer Published 30 May 2018

Korean automaker Hyundai Motor is investing $388m to build a new plant in Alabama to manufacture engine heads and to enhance its existing operations to support production of new models of Sonata and Elantra sedans.

The investment will create 50 new jobs at the new plant.

Hyundai Motor Manufacturing Alabama (HMMA) is preparing for the next-generation Hyundai engine, which the company says needs new technologies and components as a part of its assembly process.

The investment will be used by the company in buying equipment for engine head machining plant and updated technology in an existing engine plant.

Hyundai president and CEO Dong Ryeol Choi said: “With our latest expansion, HMMA continues to show its strong commitment to the people of Montgomery and the people of Alabama. Hyundai is continuing its track record of investing in new manufacturing technologies to ensure the long-term success of our Alabama assembly plant.”

The company said that it will cost around $40m to construct the 260,000ft2 building that will house the head machining equipment.

Construction of the plant is scheduled to be completed by November this year, and operations are the plant will begin in the middle of next year.

The project will also free up space to expand engine assembly lines in one of Hyundai’s existing engine plants.

At the plant, Hyundai will produce the next generation engines for its models including Sonata and Elantra sedans and the Santa Fe crossover utility vehicle.

With the new plant in place, Hyundai will be able to produce 700,000 engines per year and support the company and its subsidiary Kia Motor’s vehicle manufacturing.

Since starting operations back in 2005, HMMA has been one of the River Region’s largest private manufacturers supporting 2,700 full-time and 500 part-time employees.

Alabama Governor Kay Ivey said: “Hyundai is an important member of Alabama’s dynamic auto industry, and this expansion at its Montgomery manufacturing facility will power the global automaker’s drive for future growth in the US.

“Hyundai’s significant new investment is a strong testament to the company’s confidence in its Alabama operation and in its highly skilled workforce.”

Image: Hyundai’s plant at Alabama. Photo: Courtesy of Hyundai Motor America.