Hyundai to build car plant in Alabama
MONTGOMERY, Ala. (AP) – The decision by Hyundai Motor Co. to build its first U.S. manufacturing plant near Montgomery is the state’s “biggest economic development announcement ever,” the governor says. “This is a tribute to the people of Alabama that a renowned corporation like this would look to Alabama for a place to call home. It’s a tribute to the state’s world-class workers,” said Gov. Don Siegelman, who got word of the South Korean automaker’s decision Monday night.
One expert says the decision to build the $1 billion plant in Alabama should be an economic boost for a poor state attempting to recover from a recession. The plant will employ about 2,000 workers and make 300,000 cars a year starting in 2005.
“This will mean an influx of cash that will help education in the state. It creates an atmosphere that Alabama is open for business and has a work force that’s willing to work,” said Dan Page, professor of finance at Auburn University.
Hyundai Motor President Kim Dong-jin announced the company’s decision after its board of directors met Tuesday morning at its Seoul, South Korea, headquarters.
“Our decision to build this facility in Montgomery, Alabama underscores our commitment to the U.S. market,” said Mong Koo Chung, chairman of Hyundai Automotive Group.
Hyundai had narrowed its choice to sites at Montgomery and at Glendale, Ky.
The automaker earlier had ruled out sites in Mississippi and Ohio.
“I think that we have done the best that we can do,” Kentucky Gov. Paul Patton said after learning his state had been passed over.
Hyundai, South Korea’s largest automaker, posted a net profit of $900 million last year, the highest in its 35-year history. The company credited brisk sales of expensive luxury cars and sport utility vehicles.
The Alabama Legislature last month approved a $118 million package of incentives – including $75 million to train workers – to encourage Hyundai to locate the assembly plant in the state.
After months of hard work, the chairman of the Montgomery Area Chamber of Commerce, Lawrence Cole Jr., said Hyundai made the right decision.
“This is the biggest announcement Montgomery has had in a long time,” Cole said.
“Anytime you can bring in jobs and continue to improve the quality of life, that is big.”
In the past decade, Alabama has also been selected by MercedesBenz and Honda for major assembly plants.
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On the Net:
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