Hyundai Motor Manufacturing Alabama is investing $388 million to construct a plant dedicated to manufacturing engine heads and enhance production in support of new models of Sonata and Elantra sedans in Montgomery, Alabama.
According to state officials, Hyundai Motor Manufacturing Alabama (HMMA) is preparing for the next-generation Theta III engine, which requires new technologies and components as a part of its assembly process. The capital investment, which is expected to create 50 jobs, will be spent on equipment for the engine head machining plant and updating technology in an existing engine plant.
It will cost approximately $40 million to construct the 260,000-square-foot building that will house the head machining equipment.
Construction on the engine head machining plant is scheduled to be completed in November 2018. This project will free up space to expand engine assembly lines in one of HMMA’s existing engine plants.
“With our latest expansion, HMMA continues to show its strong commitment to the people of Montgomery and the people of Alabama,” Hyundai President & CEO Dong Ryeol Choi said at today’s announcement. “Hyundai is continuing its track record of investing in new manufacturing technologies to ensure the long-term success of our only U.S. assembly plant.”
HMMA will begin producing the Theta III engine by mid-2019 for Sonata sedans and Santa Fe crossover utility vehicles. HMMA will continue to build the 2.0-liter Nu engine for Elantra sedans at its manufacturing facility in Montgomery. The engine plants produce approximately 700,000 engines per year to support the vehicle production at both HMMA and Kia Motors Manufacturing Georgia in West Point, Georgia.
The Hyundai plant, which started vehicle production in May 2005, is the River Region’s largest private manufacturer with 2,700 full-time and 500 part-time employees.
“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 U.S.,” Governor Kay Ivey said. “Hyundai’s significant new investment is a strong testament to the company’s confidence in its Alabama operation and in its highly skilled workforce.”
“Montgomery remains deeply committed to its partnership with Hyundai Motor Manufacturing Alabama and is honored to see its continued growth and expansion here in the River Region,” said Montgomery County Commission Chairman Elton Dean. “Together, Hyundai and Montgomery have created a blueprint for manufacturing success of which we are very proud.
“We are so very honored that Hyundai has once again chosen to significantly invest in Hyundai Motor Manufacturing Alabama,” said Judge Charles Price, 2018 chairman of the Montgomery Area Chamber of Commerce. “As home to Hyundai’s only North American manufacturing facility, the Montgomery community pledges to continue our enormously successful 16-year partnership for this new expansion and beyond.”