South Korean auto parts maker to invest $114 million in Auburn, create 50 jobs

The South Korean auto parts manufacturer Shinhwa announced Tuesday it will invest $114 million in a new manufacturing facility in Auburn.

The investment includes a new 170,000-square-foot facility in Auburn Technology Park West, which already houses existing Shinhwa facilities, and is expected to create 50 jobs over three years.

“Shinhwa’s constant growth in Auburn demonstrates Alabama, through high levels of innovation and technical prowess, is preparing for an evolving future,” Gov. Kay Ivey said in a statement. “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.”

This is the third major investment in Alabama from the company, which opened a $42 million manufacturing facility in Auburn in 2020, followed by an additional $148 million expansion to increase output of aluminum parts for electric vehicles.

The new $114 million investment will help the company increase its capacity to manufacture motor housing covers and other auto parts, as well as parts for electric vehicles, which it supplies for automakers Hyundai and Kia.

Greg Canfield, secretary of the Alabama Department of Commerce, noted the importance of investments that increase domestic electric vehicle production, with countries such as China having led the world in electric vehicle production for years.

“Alabama’s auto sector is experiencing a major growth spurt as the industry accelerates the transition toward an electric future,” Canfield said in a statement. “We look forward to working with Shinhwa to advance its expansion plans and fully develop the growth potential of its Auburn manufacturing operation.”

The new 50 jobs will have an average annual salary of around $48,000, according to the Alabama Department of Commerce. Auburn Mayor Ron Anders said in a statement that Shinhwa has the community’s full support, and that the investment was the result of Alabama’s business-friendly climate.

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