Two New Automotive Tier II Suppliers Build in Alabama

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Researched by Industrialinfo.com (Industrial Information Resources; Houston, Texas). The state of Alabama continues to attract Tier II suppliers to the state, this time two Korean companies, which will supply Halla Climate Systems Corporation (Shorter, Alabama), a Tier I supplier to Hyundai Alabama (Montgomery, Alabama).

SCA, Incorporated, a newly-formed U.S. subsidiary of Seung Chang Company Limited (South Korea) and its affiliated companies, Kohsan Company Limited (Asan City, South Korea) and Cosmocell Company Limited (South Korea), is building a 45,000 square foot manufacturing facility in Auburn, in the Auburn Technology Park North, which is located just northwest of the town of Auburn, between US-29 and Cox Road.

SCA will make an initial investment of $4.2 million, with a $3.5 million investment within the next few years. The company intends to hire 40 jobs at first, doubling that figure as the company expands its production contracts. Construction should be completed in mid-September, with full production beginning in January 2005.

SCA makes plastic automotive components for Halla Climate Systems Corporation, to be used in Hyundai vehicles.

Pyongsan America, a newly-formed U.S. subsidiary of Pyong San Corporation (Masan, South Korea), is building a 25,000 square foot plant next door to SCA, which will manufacture liquid and suction hose pipe assemblies and discharge hose pipe assemblies, also for Halla, and will employ 35 workers initially, adding another 65 jobs over the next several years.

Pyongsan's initial capital investment will be about $6 million overall, about $3 million for the first phase. Phase I is expected to be complete, like its neighbor and compatriot, in mid-September, and expects to begin full production in January 2005.

Both companies are being built by Bailey Harris Construction (Auburn, Alabama), which has also recently completed the Weidmann Plastics facility.

The state of Alabama, as well as its various counties, continues to offer engineering/manufacturing industries a convenient package of advantages toward locating (or relocating) in Alabama, besides proximity to four major OE manufacturers (Honda, Mercedes-Benz, Hyundai, and Toyota Engine), including exceptional infrastructure, ready Internet access, industrial development parks, and a highly-trained work force.

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