Shinhwa plans $114M Alabama expansion
Shinhwa Auto USA Corp. announced last month it will invest $114 million to expand its manufacturing operation in Auburn to support the production of electric vehicle parts.
The growth project will create 50 jobs and add a new 170,000 sq.-ft. production building on Shinhwa’s campus in Auburn Technology Park West. The expansion will be the South Korean 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,” said Governor Kay Ivey. “It’s a testament to the Auburn area’s workforce that this world-class company has once again decided to launch growth plans in Lee County.”
Established in 1995, Shinhwa is a leader in the production of aluminum die cast parts for automotive manufacturers. After the Auburn facility opened in 2020 with a $42 million investment, it manufactured drive shafts for Hyundai Motor Manufacturing Alabama in Montgomery and the Kia plant in West Point, Georgia.
The company has since announced two expansion projects in Auburn, adding 90 jobs and an additional investment of $148 million to expand 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, Alabama, where Shinhwa has had 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,” added Lee.
With this new investment project, Shinhwa plans to increase capacity by expanding die casting 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 U.S.
The project will support a new contract for EV parts.
Shinhwa is committed to creating 50 jobs over the next three years, with an average annual salary of around $48,000, according to the Alabama Department of Commerce.