MONTGOMERY, Ala. — According to South Korea’s largest media outlet, automotive giant Hyundai is planning to build a second U.S. manufacturing facility, and the company has now confirmed that another Alabama location is still a good possibility.
Rumors of the second plant surfaced in March, when the same publication hinted that Hyundai would be building a new facility to build their popular Tucson and Santa Fe crossover vehicles. Demand for SUVs has begun to climb again and demand for the company’s sedans already built in Montgomery have slowed slightly as fuel prices have fallen.
The new plant would reportedly employ 3,000 and have a capacity of 300,000 vehicles per year, increasing Hyundai’s current output in the state by around 74 percent.
Hyundai officials were hesitant to either confirm or deny the reports in March, but this week an anonymous Hyundai Motors official told Yonhap News Agency “Negotiations are underway to select a site where the plant will be built and Alabama is one of the possible sites. We aim to pick a site and launch the construction of the plant within this year.”
The official did not specify any other states that might be in the running.
Hyundai isn’t the first car company to express the convenience of locating near the cadre of suppliers that have made Alabama home since the state’s automotive boom began over a decade ago.
British luxury vehicle maker Aston Martin is also rumored to be looking into locating its first manufacturing plant outside the U.K. in Alabama, near sister company Mercedes Benz’s factory in Vance.
Aston Martin CEO Andy Palmer called Alabama the “obvious choice” for their new plant.
At least one Hyundai official, however, has expressed concerns that a second major manufacturing facility in Alabama could “really burden the workforce.”
Hyundai Motor America President and CEO Dave Zuchowski told Automotive News last month that he was worried the Yellowhammer State wouldn’t be able to provide the qualified workers necessary for the expansion—a claim Alabama officials expressly dismissed.
“This whole discussion about the availability of the technical work force is not unique to Alabama,” Alabama Commerce Secretary Greg Canfield told the Montgomery Advertiser, saying that the state can “absolutely” provide the workers needed for an expansion. “Every state is kind of addressing it in their own way.”
Montgomery mayor Todd Strange added that there were 25,000 applicants for only 877 Hyundai jobs when the plant added a third shift three years ago.
“We’ve tried to be proactive in communicating what we’re doing,” Strange said in reaction to Zuchowski’s comments. “We’ve had a wonderful relationship over the last 10 or 12 years, and I am shocked that if (Zuchowski) has these concerns that he has not told me. No one at HMMA has ever referenced this issue with us.”
Last month the Montgomery Hyundai plant celebrated its 10th year of production in Alabama, bringing an estimated 7,000 jobs either directly or in supporting industries.
In 2014 Alabama broke its previous record for automotive production with over 1 million vehicles being built in the state. An additional 300,000 per year could cement Alabama’s spot the up-and-coming car manufacturing capital of the country.
Like this article? Hate it? Follow me and let me know how you feel on Twitter!
— Elizabeth BeShears (@LizEBeesh) January 21, 2015
Don’t miss out! Subscribe today to have Alabama’s leading headlines delivered to your inbox.