Hyundai supplier, Mobis, announce new factory bringing 400 jobs to Montgomery
Alabama Governor Kay Ivey joined executives of Hyundai Mobis in the Old House Chambers of the historic Alabama State Capital to announce the company’s plan to build a second manufacturing plant in the Montgomery area. Montgomery Chamber of Commerce Chairman Cedric Campbell said that Mobis plans to invest $205 million to open an EV battery module plant in Montgomery that will eventually employ at least 400 people. Once it reaches full production, the 450,000-square-foot facility will be able to supply over 200,000 EV batteries annually to the Hyundai Motor Manufacturing Alabama (HMMA) factory in Montgomery and the Kia Georgia plant. Hyundai plants to produce a luxury Genesis GV70 vehicle as well as an electric version of the popular Santa Fe sports utility vehicle. “Alabama’s auto manufacturing sector is evolving rapidly to capitalize on the EV revolution that is sweeping the industry, and this new Hyundai Mobis battery plant represents another milestone in that transition,” said Gov. Ivey. “We’re excited about the company’s new investment and what it represents for the next chapter of automaking in Alabama.” Mobis is one of the largest automotive suppliers in the world. “It is an honor to host you all in the state capital, and especially to have our friends from Korea, here today,” said Gov. Ivey. Ivey praised Hyundai. “We have watched the company grow more and more and have watched the company evolve to keep up with the ever-changing automotive industry,” said Ivey. “When you choose the state of Alabama to do business, you can expect the full support of the state of Alabama as well as from local government.” H.S. Oh is the vice president of the division that produces the electric powertrain business for Hyundai Mobis. Oh said that the new Alabama EV battery assembly facility will play a critical role in the company’s plans to expand its production network across the globe. “As the EV market continues to grow, having a strong production capacity will be key in allowing Hyundai Mobis to see continued growth in the market,” Vice President Oh stated. “We believe this new facility in Montgomery will be an important step in that process, and we are excited for the project to be underway.” “Governor Ivey, we thank you for the work that you, your cabinet, and your entire staff do for the state of Alabama, the Montgomery City, and the entire river region,” said Montgomery Mayor Steven Reed. “There are a lot of pieces that have to come together to have a $205 million dollar investment, especially one that produces over 400 jobs.” “We will be there every step of the way to get things up and running in this facility,” said Mayor Reed. Reed thanked the members of the industrial development board, the Governor, the county, and the Chamber of Commerce, “It is the hard work of the employees that make this possible. It is their hard work that allows us to recruit companies to this city and the river region.” “This is one of the best economic development years in memory, said Reed, who just last week welcomed Manna Beverages and Ventures to the city. “I am delighted to welcome the Mobus facility to Montgomery,” said HMMA President Ernie Kim. “Over the last ten years, Hyundai has enjoyed the support of the City of Montgomery and the State of Alabama. This facility will allow Hyundai to become a leader in electric vehicle production.” Isaiah Sankey is the Vice Chairman of the Montgomery County Commission. “Electrification of vehicles creates a green, clean economy,” said Sankey. “Electrification of vehicles makes me proud that Montgomery County will be part of cleaning up the environment.” “Thanks to the governor for all that you do that makes the state of Alabama great,” Sankey said. The EV battery module plant will expand Hyundai Mobis’ already large presence in Montgomery. Hyundai Mobis has operated a manufacturing facility on 83 acres in Montgomery since 2002 as the largest Tier 1 supplier to HMAA and Kia Georgia. The plant supplies the auto plants with complete cockpit modules and front and rear chassis modules, as well as bumper assemblies and instrument panels. “Hyundai Mobis’ investment project in Montgomery reflects an acceleration in the development of the EV supply chain in Alabama’s auto industry,” said Alabama Department of Commerce Secretary Greg Canfield in a statement. “We’re going to be a major production player in the EV market, and that’s going to trigger more growth within the sector.” Hyundai Mobis said that the construction of the new facility will be located on HMAA’s sprawling campus just off Interstate 65 in Montgomery. Construction is expected to begin as early as December. Production of EV battery assemblies is projected to begin in 2024. President Joe Biden has announced a goal of making the entire new American automobile production electric by 2030. To connect with the author of this story, or to comment, email brandonmreporter@gmail.com.
Hyundai announces expansion project in Alabama
One car manufacturer has announced expansion plans in Alabama, Gov. Kay Ivey said. The governor announced Tuesday afternoon that Hyundai Motor Manufacturing Alabama will begin construction of a hybrid version of the Santa Fe along with the Electrified Genesis GV70 sport utility vehicles at its Montgomery factory. The company, according to the release, is expanding its production in the United States to include electric vehicles. “Over the years, we have developed an enduring partnership with Hyundai, and it’s been great to witness the profound economic impacts of the company’s continued investments in Alabama,” Ivey said in the release. “Hyundai’s new growth plans in Montgomery will help prepare the state’s auto industry for the EV revolution while also aligning with our strategic initiatives such as Drive Electric Alabama.” Hyundai, according to the release, is investing $300 million in the project and will create 200 new jobs at its lone U.S.-based production facility. The company recently signed a project agreement with Ivey. Hyundai President and Chief Executive Officer Jose Munoz announced earlier Tuesday, according to the release, that the Alabama assembly plant would be producing electric vehicles. Under the project, Hyundai will perform plant expansion projects that will provide additional warehouse space and provide assembly processes that will be enhanced to produce electric vehicles. The company plans to begin production on the Santa Fe Hybrid in October and the Electrified GV70 in December. “Hyundai Motor Company is taking its first steps in electric vehicle production in the United States,” Ernie Kim, HMMA’s president and chief executive officer, said in the release. “We are excited to showcase our team members’ skills in producing electric vehicles here in Alabama.” According to the release, the two new vehicles join the company’s roster being produced at the facility that includes the Elantra, Santa Fe, Tucson SUV, and the Santa Cruz sport adventure vehicle. Greg Canfield, who serves as secretary of the Alabama Department of Commerce, said the company’s shift to producing electric vehicles at the plant shows the future of the automotive industry. “With this EV expansion, Hyundai is again demonstrating that Alabama’s auto sector is concentrating on what the future holds for the industry and that it will continue to evolve to meet all challenges,” Canfield said in the release. “This is an exciting development both for Hyundai and for our dynamic automotive manufacturing sector.” Hyundai, according to the release, has invested more than $1.8 billion in its Alabama facilities and currently employs more than 3,200 full-time workers. According to the release, the Electrified G70 is designed as a luxury SUV, featuring a new design and driver-oriented technology. The Santa Fe Hybrid would match versatility with fuel efficiency. Republished with the permission of The Center Square.
Hyundai halts Alabama production line amid parts shortage
A production line in Alabama that makes many of Hyundai’s North American vehicles will be halted this week due to a parts shortage. The shutdown will leave about 1,000 regular workers temporarily unemployed for seven days, The Montgomery Advertiser reported. The problem is that Hyundai Motor Manufacturing Alabama hasn’t been able to get enough parts because of a semiconductor shortage. As a result, production at the Montgomery plant will be suspended until June 21. “No other downtime for this reason is expected,” said Robert Burns, vice president of human resources and administration. The company “will continue to work with Hyundai Motor Group’s global purchasing team to allocate microchips to its U.S. manufacturing plant to optimize production in the coming weeks and months,” Burns said. About 3,000 people work at the Montgomery plant. Most of them will continue to work this week, the newspaper reported. That includes maintenance workers, employees processing completed vehicles, and engine shop employees building engines to be delivered to Kia’s plant in Georgia. The plant produces the Sonata and Elantra sedans as well as the Santa Fe and Tucson SUVs. It began rolling out the new Santa Cruz pickup earlier this month after finishing a $410 million expansion. The company will help workers file unemployment claims, Burns said. Republished with the permission of the Associated Press.
Hyundai’s new engine plant, Santa Fe will drive the future of the automaker’s Alabama operations
Hyundai Motor Manufacturing Alabama’s (HMMA) $388 million new engine plant and boosted SUV production are moves to position the South Korean automaker’s Montgomery plant as a key component of its global innovation efforts. On its own as an economic development project, the 260,000-square-foot engine plant and the 50 new jobs would be remarkable. But officials said it’s more than that. “This facility really is positioning itself for the future with this investment,” said Alabama Commerce Secretary Greg Canfield. “This is about technology. This is about taking a facility that’s been around for a couple of decades and really taking it and launching it into the next 20, 25, 30 years of productivity and ingenuity and technology.” With Tuesday’s announcement of the engine plant and today’s launch of the new Santa Fe SUV, HMMA is demonstrating its competitiveness and viability, Robert Burns, HMMA public relations director said. “We’re going to feel like we have a good product mix – Sonata, Elantra, Santa Fe – to meet the market demand in the U.S. and Canada as well as Mexico,” he said. Burns said more than 80,000 new Santa Fes will be produced the rest of this year with a goal of producing more than 100,000 in 2019. Santa Fes will make up about 40 percent of the production at the plant while the Sonata and Elantra sedans will each make up around 30 percent, he said. The engine plant will produce 700,000 engines annually for vehicles at both HMMA and those at the sister Kia plant in Georgia. “It’s important to point out that this engine machining line that’s being built is freeing up that space we need in the assembly plant that we have right now,” Burns said. “Because of the new process, we need more assembly line space to do that part of the process.” The new engines are expected to be more efficient with better fuel economy, but little else is being revealed. Canfield said Hyundai is showing its ability to respond to customer demand, a flexibility the automaker is known for throughout the world. “A plant like this could just sit here and continue to do the things that it does well,” he said. “This is the next stage of innovation technology that happens to evolve around engines and the power plant as well as other technology that will be developed not only for the Kia line but also the Hyundai line here at home.” It positions Hyundai’s Alabama plant as a linchpin for the company’s growth. “This investment really plants that flag for a long time to come,” Canfield said. Republished with the permission of the Alabama Newscenter.
Hyundai to invest $388 million to prep Alabama plant for next-generation engines
Gov. Kay Ivey joined Hyundai Motor Manufacturing Alabama LLC President and CEO Dong Ryeol Choi today to announce that Hyundai is investing $388 million to construct a plant dedicated to manufacturing engine heads and enhance existing operations to support production of new models of Sonata and Elantra sedans. The investment will create 50 new jobs at the automaker’s Montgomery manufacturing complex. 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. Nearly all of the capital investment will be spent on equipment for the engine head machining plant, including updating technology. “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.,” 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.” Track record “With our latest expansion, HMMA continues to show its strong commitment to the people of Montgomery and the people of Alabama,” Hyundai President and 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,” he added. Hyundai said 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 for completion in November. The project will free up space to expand engine assembly lines in HMMA’s two existing engine plants. HMMA will begin producing the Theta III engine in April 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 vehicle production at both HMMA and Kia Motors Manufacturing Georgia in West Point, Georgia. In March 2017, HMMA marked the production of its 5 millionth Alabama-made engine. “Over the past 13 years, Hyundai’s Alabama assembly plant has solidified a reputation as one of the industry’s most innovative and productive manufacturing centers,” said Greg Canfield, secretary of the Alabama Department of Commerce. “Hyundai’s investment to prepare the Montgomery facility for next-generation engines underscores the strength of the alliance we have formed with the automaker and sets the stage for continued growth in this mutually beneficial relationship.” Longstanding partnership HMMA, 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. “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.” Hyundai has made a series of large investments to expand operations at the Montgomery facility since 2000, when the plant was first announced. In 2007, the automaker added 522 jobs with a $270 million investment at the factory, and in 2011, it created 214 jobs with a $173 million project, according to Alabama Department of Commerce records. It re-launched Santa Fe production with a $52 million project in 2016. Republished with the permission of the Alabama Newscenter.
