Consultants Forum Advertise
Subscribe
Close

  • Free for qualified executives and consultants to industry

  • Receive quarterly issues of Area Development Magazine and special market report and directory issues

Subscribe Now
Renew

Area Development - Site Selection, Facility Planning and Workforce Development

South Korea-Based Shinhwa Auto USA Plans Auburn, Alabama, Parts Plant

05/18/2022
Shinhwa Auto USA Corp. plans to add a second auto parts manufacturing facility in Auburn, Alabama. The $78 million project is expected to create 42 jobs over the next three years.

The company will build the new 400,000-square-foot factory across from its existing location in Auburn Technology Park West to expand output of aluminum parts and meet future demands stemming from electric vehicle production.

“This new facility will give us greater capacity for aluminum automotive parts, including both die casting and machining operations, allowing us to further diversify our customer base,” said Kwi Hyun Lee, founder and CEO of the Shinhwa Group.“This increased capacity will give us the ability to provide greater support for the electric vehicle market here in the U.S.”

Since starting its Auburn facility in 2019, Shinhwa has steadily grown to meet the needs of the automotive industry in the U.S. including vertically integrating elements of its supply chain and increasing capacity to support both electric and combustion engine vehicle manufacturing. The Auburn facility supplies parts to Hyundai’s assembly plant in Montgomery and Kia’s plant in West Point, Georgia.

“This is a great example of the constant innovation and advancements in manufacturing, particularly in the automotive sector, right here in Alabama,” Governor Kay Ivey said. “With this expansion, Shinhwa will have invested over $190 million and created more than 185 well-paying jobs since choosing Auburn as their first U.S. location. Congratulations to Shinhwa on another successful expansion.”

This is the second expansion launched by Shinhwa since beginning operations in Auburn three years ago. In November 2021, the company announced the addition of high-pressure aluminum die casting and post-processing equipment through a $42 million expansion project.

“Alabama has become a key player in the evolving global automotive industry, and Shinhwa’s continued growth in Auburn illustrates how our industry is preparing for the future,” said Greg Canfield, Secretary of the Alabama Department of Commerce.“We look forward to working with the company to support its expansion plans and fully develop the growth potential of its Auburn manufacturing operation.”

Shinhwa was founded in 1995 in Changwon, South Korea. The company’s focus on a high level of automation and improvements in areas with a high degree of technological challenges provides important value to its customers in the automotive industry.

Share

Exclusive Research