Hyundai plans to invest $173 million and add 214 jobs in an expansion of the engine plant at its Alabama auto factory.Hyundai plans to invest $173 million and add 214 jobs in an expansion of the engine plant at its Alabama auto factory in Montgomery.Gov. Robert Bentley today joined Young Deuk Lim, president and chief executive of the Korean automaker's Alabama operations, for the announcement.
Hyundai will produce the Nu engine, which is replacing the Lambda engine at the factory. The Nu will be used in the Hyundai Elantra compact sedan, which is made in Montgomery.
It also will be used in the Hyundai Santa Fe and Kia Sorento, two SUVs built at a factory in Georgia operated by Hyundai's sister company, Kia.
Most of the capital investment, $163 million, will be spent on equipment and updated technology for the engine plant. The remaining $10 million will be used to expand the building to more than 360,000 square feet.
The Nu engine plant will produce 300,000 units a year. It also will expand capacity to build the Theta engine, which powers another Montgomery product, the Sonata sedan.
Construction is scheduled to be complete this fall, with production slated to begin in March 2012.
Bentley said the engine plant expansion shows Hyundai's commitment to the state.
"This is a great day for the state of Alabama, city of Montgomery and Hyundai Motor Manufacturing Alabama," the governor said in a prepared statement.
Sales of both the Sonata and the Elantra have been surging.
In its U.S. sales report for April, Hyundai said sales of the Sonata and the Elantra topped 20,000 each. That was first time the company has sold more than 20,000 units in the same month of two different models.
The factory's 2,645 employees have been working overtime to meet demand for the vehicles.
So far this year, the factory has produced 114,678 vehicles. It is projected to produce more than 330,000 vehicles this year, topping its stated annual capacity of 300,000
No comments:
Post a Comment