Kia Motors Corp. carried out the groundbreaking ceremony on the site of its first-ever U.S. manufacturing facility here. The $1 billion automotive assembly and manufacturing plant is central to Kia’s plans to increase its North American sales (U.S. and Canada) to around 650,000 units by 2010, according to the company.
The ceremony was attended by more than 500 VIPs, both from South Korea and the United States, including Mong-Koo Chung, chairman of the Hyundai-Kia Automotive Group; Euisun Chung, president and CEO of Kia Motors Corp.; Georgia Gov. Sonny Perdue; and a number of high-ranking South Korean government and state of Georgia officials.
“Management and staff at Kia have enthusiastically worked to bring the company to a point where it is today one of the fastest growing players in the global auto sector,” Chung said. “Now, the establishment of the U.S. plant will serve as a springboard for us to achieve our ultimate goal of firmly establishing Kia as a truly world-class global automaker.
“[We] will do our best to secure jobs and sustain financial growth in the area through transparent management and world-class quality assurance,” he added. “Kia will strive to become a responsible corporate citizen who contributes to the local community and preservation of the environment.”
Perdue said the ceremony marks the beginning of a long-term partnership between Kia Motors and the state of Georgia.
“We are looking forward to many years of cooperation as Kia’s new plant in West Point creates thousands of jobs and sets the standard for the automotive industry,” he said.
The facility in Georgia, named KMMG (Kia Motors Manufacturing Georgia), is scheduled to begin production in 2009 and is expected to produce 300,000 vehicles per year at full capacity. The 224,000 square meter plant will be situated on a site covering 2.6 million square meters.
The plant will employ about 2,500 local workers, while five to six suppliers have plans to set up operations in Troup County and its environs, creating an additional 2,000 jobs. About 10 suppliers are eventually expected to locate in the vicinity, according to Kia.
Alongside, Kia’s second manufacturing plant in China is scheduled for completion next year, and the start of production at its first European facility in Slovakia is slated for next month.
Kia Motors, along with Hyundai Motor, has dramatically expanded its presence in the North American market in recent years, having invested more than $300 million in the region since 2002 in a range of initiatives, including an R&D center in Michigan, a custom-built vehicle proving ground in the Mojave desert, and the largest automotive design studio in California.
Kia Motors America is currently constructing an $85 million, 22,000 square meter corporate headquarter building in Irvine, Calif., which is scheduled for completion in December. The new facility will also be home to a $35 million, 9,400 square meter, Kia-exclusive design center to be completed next year.
Following construction of the KMMG facility, Kia will have the capability to localize all areas of its business in the United States — from R&D and production to marketing, sales and after service.
For MORE NEWS BRIEFS, click here.
For a FREE SUBSCRIPTION to Expansion Management, click here.
Go to STATE SPOTLIGHTS to read more about other news and articles about this state.
Go to INDUSTRY SPOTLIGHTS to read more about other news and articles about this industry sector.
Means the article is accessible only to our magazine subscribers.
