The Shinhwa Group, a South Korean automotive parts manufacturer, plans to establish a manufacturing plant in Auburn, Alabama. The company has decided to invest USD42m and create 95 jobs in Auburn. Alabama is home to a rapidly growing automotive cluster that produces around 1m vehicles a year and provides an estimated 40,000 direct jobs at companies within the sector.
Initially, Shinhwa will produce drive shafts for vehicles made by Hundai Motor Manufacturing Alabama and Kia Motor Manufacturing Georgia. Shinhwa plans to expand its production in Auburn in the future to provide parts for other car manufacturers. “The Shinhwa Group has become a leader in the aluminium die casting industry because of our willingness to overcome technical challenges,” says Kwi-Hyun Lee, CEO of the Shinhwa Group. And Duk Keun Oh, president of the newly founded entity Shinhwa US Auto Corp. says: “We will start our US project by introducing a highly automated machining process to be followed in the near future with our die casting lines,” said
Shinhwa was founded in Changwon, South Korea, in 1995, and the Auburn operation will be its first manufacturing location in the US. Phase 1 of the project is expected to be completed in Summer 2020.