Shinhwa Auto USA Corp. is investing $114 million to expand its current manufacturing operation in Auburn, Ala., to support the production of electric vehicle parts, Gov. Kay Ivey announced recently.

The growth project will create 50 jobs and add a new 170,000-sq.-ft. production facility on the South Korean automaker's campus in Auburn Technology Park West.

The expansion will be the company's third since selecting the Alabama city as the site of its first U.S. plant in 2019.

"Shinhwa's constant growth in Auburn demonstrates Alabama, through high levels of innovation and technical prowess, is preparing for an evolving future," Ivey said in mid-August. "It's a testament to the Auburn area's workforce that this world-class company has once again decided to launch growth plans there."

Established in 1995, Shinhwa is a leader in the production of aluminum die-cast parts for automotive manufacturers.

Shinhwa Supplies Parts for Other Asian Companies in Region

After the Auburn facility opened in 2020 following a $42 million investment, it began producing drive shafts for both the Hyundai Motor Manufacturing Alabama in Montgomery, and the Kia plant in West Point, Ga.

Made in Alabama, the news site of the Alabama Department of Commerce (DOC), noted that the South Korean company has since announced two expansion projects in Auburn, adding 90 jobs and an additional investment of $148 million to expand its output of aluminum parts and meet future demands stemming from EV production.

"We are thrilled to be expanding our business yet again, building new state-of-the-art facilities in Auburn, Ala., where [we have enjoyed] a successful business operation since 2019," said Kwi Hyun Lee, chairman of Shinhwa Group.

"As one of the most innovative industrial manufacturers of aluminum car components, we are confident that the momentum we have achieved will continue to meet customers' growing demand for high-quality products," he added.

Made in Alabama reported that with this new investment project, Shinhwa plans to increase capacity by expanding die cast operations and adding associated processes that are required to make control arm, knuckle, carrier, and motor housing covers in support of Hyundai, Kia, and other automakers in the United States.

The project also will support a new contract for EV parts.

"Alabama's auto sector is experiencing a major growth spurt as the industry accelerates the transition toward an electric future," explained Greg Canfield, secretary of the Alabama DOC. "We look forward to working with Shinhwa to advance its expansion plans and fully develop the growth potential of its Auburn manufacturing operation."

Shinhwa is committed to creating 50 jobs over the next three years, with an average annual salary of around $48,000, Canfield added.

"Shinhwa's story here in Auburn is evidence of the work generations of leaders have done to make our community not only welcoming but also fertile ground for businesses," Auburn Mayor Ron Anders said in a statement. "We're grateful for Shinhwa's investment in Auburn and look forward to seeing them continue to thrive."

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