South Korean supplier plans $40m auto parts plant in Georgia near new Hyundai complex
A South Korean firm will build a $40 million factory to manufacture heating and cooling systems near a Hyundai Motor Group auto assembly plant on the Georgian coast
STATESBORO, Georgia — A South Korean company will build a $40 million plant on the Georgian coast to manufacture heating and cooling systems near a Hyundai Motor Group car assembly plant.
Hanon Systems announced Tuesday that it will build the Statesboro plant, with plans to hire at least 160 new employees.
Hanon Systems is the eighth major supplier to set foot in the region after Hyundai announced in 2022 that it would build a $5.5 billion plant to assemble electric vehicles and batteries in Ellabell, Georgia. The site could grow to 8,100 employees and is expected to start producing vehicles in 2025.
Hanon Systems and seven other vendors have since pledged to invest more than $2 billion and hire 4,800 people.
“Today’s announcement aligns with our strategy to support the industry’s transition to electrification while growing our presence in North America,” Hanon Systems CEO Ming Sun said. in a press release.
Like a number of South Korean suppliers, Hanon Systems already supplies a Hyundai assembly plant in Montgomery, Alabama, and a Kia plant in West Point, Georgia. Based in Daejon, South Korea, Hanon Systems manufactures heating and air conditioning systems at a plant in Shorter, Alabama, which opened in 2003 and has expanded at least three times.
The company plans to begin production in May 2024 at a plant located in a business park on the southern outskirts of Statesboro.
The majority of Hanon Systems is owned by a South Korean private equity firm, while the rest is listed on the stock exchange. The company has factories around the world and was created by combining Halla Climate Control and the associated businesses of Visteon Corp., Cooper Standard Automotive and Magna International.
Hanon Systems could qualify for $3.2 million in state income tax credits, at $4,000 per job over five years, provided workers earn at least $31,300 a year. The state will also pay to train the workers. The company could qualify for other incentives, including Bulloch County property tax relief.
ABC News
