Shinhwa Auto USA Corp. has announced plans to build a second factory in Auburn, across the street from its present facility in Auburn Technology Park West. The $78 million project is expected to create some 42 jobs over the next three years.
The company plans to increase production of aluminum auto parts, especially to meet demand for parts for electric vehicles. Since opening in 2019, Shinhwa has been a key supplier for Hyundai in Montgomery and Kia in West Point, Georgia.
“This new facility will give us greater capacity for aluminum automotive parts, including both die casting and machining operations, allowing us to further diversify our customer base,” said Kwi Hyun Lee, founder and CEO of the Shinhwa Group. “This increased capacity will give us the ability to provide greater support for the electric vehicle market here in the U.S.”
The announcement marks the company’s second major expansion. In 2021 it added high-pressure aluminum die casting and post-processing equipment, a $42 million expansion.
Auburn Mayor Ron Anders welcomed the news. “We’re thrilled to see the success and growth Shinhwa has experienced in a few short years here in Auburn,” said Anders. “The company has been a great addition to our high-tech manufacturing base, and we look forward to seeing Shinhwa’s impact grow along with its footprint.”
Alabama Commerce Secretary Greg Canfield said, “Alabama has become a key player in the evolving global automotive industry, and Shinhwa’s continued growth in Auburn illustrates how our industry is preparing for the future.”
The announcement further bolsters Alabama’s role in U.S. automaking, said Gov. Kay Ivey. “This is a great example of the constant innovation and advancements in manufacturing — particularly in the automotive sector — right here in Alabama.” She noted that the South Korea-based firm has invested more than $190 million and created more than 185 jobs since picking Auburn for its first U.S. location.