HYUNDAI MOTOR COMPANY ANNOUNCES IT WILL BUILD ITS FIRST U.S. MANUFACTURING PLANT IN MONTGOMERY, ALABAMA FACILITY TO COST $1 BILL

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04/02/2002

Hyundai Motor Company (HMC), Korea's largest automotive manufacturer, today announced it has approved construction of a $1 billion automotive assembly and manufacturing plant in Montgomery, Alabama. Hyundai said the facility - the company's first assembly and manufacturing plant in the U.S. - will begin production in 2005, creating approximately 2,000 plant jobs in Montgomery and the surrounding area.

The facility, to be built on 1,600 acres, is expected to produce 300,000 vehicles per year at maximum capacity.

The decision by HMC's Board of Directors to build the facility was based on continued strong sales and market share growth in the U.S. market. In 2001 alone, the Hyundai Automotive Group (which consists of Hyundai Motor America and Kia Motor America in the United States) saw sales of 569,956 units, an increase of 29 percent over 2000, the largest increase in the auto industry.

"Our decision to build this facility in Montgomery, Alabama underscores our commitment to the U.S. market," said Mong Koo Chung, chairman of Hyundai Automotive Group. "American consumers have increasingly placed their trust in Hyundai automobiles, as witnessed by our track record of strong sales growth over the last several years," he added.

"Hyundai is in the process of doing more design and engineering in the United States so that our products will be even better adapted to the American consumer's needs and tastes," said Chung. "Our new plant will allow us to build more vehicles for this growing market and get them to our customers more quickly while continuing to produce the high quality, well-styled, high-value products our customers have learned to expect from Hyundai," he said.

HMC selected Montgomery, Alabama for its first U.S. plant because of its high-quality workforce, its strategic location in proximity to American populations centers, the superb automotive parts supply chain available in the region and the commitment shown by the state of Alabama and the city of Montgomery, which provided the best environment for the new plant.

"On behalf of Hyundai Motor Company, I wish to thank Governor Don Siegelman and the state and local officials who have shown such commitment to Hyundai," said Chairman Chung. "We believe this announcement is the beginning of an enduring partnership"

An official groundbreaking for the plant is scheduled for April 16. That event will be attended by Chairman Chung and other leading executives from Hyundai Automotive Group and its U.S. affiliates.

News Source : HYUNDAI MOTOR COMPANY ANNOUNCES IT WILL BUILD ITS FIRST U.S. MANUFACTURING PLANT IN MONTGOMERY, ALABAMA FACILITY TO COST $1 BILLION, EMPLOY 2,000