Auto supplier Samkee Corp to build first U.S. manufacturing plant in Tuskegee

On Friday, Alabama Governor Kay Ivey announced that Samkee Corp., a major South Korean automotive supplier, plans to invest $128 million to open its first U.S. factory in Alabama through a project that will create 170 jobs in Tuskegee and provide an economic boost for Macon County.

“Alabama’s auto industry is filled with world-class manufacturing companies from around the world, and Samkee will fit right in with that group,” said Gov. Ivey. “We’re proud that the company selected Alabama for its first U.S. production center and look forward to seeing it grow and thrive in the coming years.”

I just announced Samkee Corp., a major South Korean automotive supplier, plans to invest $128 million to open its FIRST U.S. plant in Tuskegee! Made in Alabama is bringing back Made in America! #alpolitics https://t.co/Un2QF24X1b

— Governor Kay Ivey (@GovernorKayIvey) February 10, 2023

After finalizing agreements with state and local authorities, Samkee Corp. is poised to begin construction on the new manufacturing facility in the Tuskegee Commerce Park. It will become the city’s first auto parts manufacturer.

Samkee will serve as a Tier 1 supplier to Hyundai Motor Co. According to the Alabama Department of Commerce, the new jobs will pay an average wage of just over $20 an hour.

Samkee was founded in 1978. The company specializes in high-pressure die-cast aluminum components, including parts for engines, transmissions, and electric vehicles, along with alloys. The company currently operates factories in South Korea and China.

Hyundai has a major automobile manufacturing presence in Montgomery.

Chi Hwan Kim is the CEO of Samkee.

“Samkee is a worldwide leader in quality manufactured aluminum die-cast products,” Kim said. “Our Tuskegee plant will allow our company to serve the North American market along with Hyundai’s market growth for both combustion engines and transmissions, as well as electric vehicle and battery parts.”

Kim thanked Gov. Ivey for her assistance.

“I give many thanks to Governor Ivey, Secretary Canfield and local officials, and Hyundai Motor for their steadfast support to Samkee in our decision today,” Kim added.

Greg Canfield, Secretary of the Alabama Department of Commerce, said that Samkee’s decision to locate its first North American factory in Macon County reflects its confidence in the region’s workforce.

“The skilled workers in Alabama’s auto sector have proved they are ready for any challenge the industry can throw at them, and they consistently turn out complex products of the highest quality,” said Secretary Canfield. “Samkee has come to the right place for its new U.S. industrial home.”

Joe Turnham, director of the Macon County Economic Development Authority, said that local support for the project includes site work in Tuskegee Commerce Park, upgrades to the water and sewer system, and the installation of a new power substation.

“Samkee appreciated the local assets, spirit of cooperation, and friendship developed over time with Macon County,” said Turnham. “We have strived with our stakeholders in a team effort to meet Samkee’s needs. We will remain partners going forward to see that they have a successful construction and manufacturing launch and future growth in the North American market. This is obviously a big win for our community and its citizens.”

Tuskegee Mayor, Tony Haygood, said, “Today’s announcement is another major step in Tuskegee’s progression as a city. Samkee will be a great community partner for years to come and an example of how Tuskegee is open for business in the 21st Century marketplace. We appreciate Samkee’s partnership with us and will strive to succeed and grow together.”

New automobiles and automotive parts are Alabama’s largest export. The state exported $8.9 billion worth of Alabama-made vehicles and parts last year, which approached $8.9 billion last year, an increase of 13%. Billions more are sold in Alabama and all fifty states.

Alabama Industrial Development Training (AIDT), the state’s primary workforce development agency, will help Samkee assemble and train its workforce.

According to an analysis by the Center for Business and Economic Research (CBER) at the University of Alabama, the Samkee factory will generate $140.2 million in annual economic output in Macon County, will add $37 million to the county’s GDP, and generating $1.3 million per year in taxes for Macon County.

Production is expected to begin at the Tuskegee plant sometime next year.

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