Hyundai Motor Group Chairman Chung Eui-sun met with President Donald Trump at the White House on March 24 and announced a plan to invest a combined $21 billion in the United States in major areas, such as automobile, parts and logistics, steel and future industry sectors over four years, starting this year.
Hyundai Motor Group will raise the production capacity of Hyundai Motor Group Metaplant America (HMGMA) in Georgia, whose dedication was held on March 26, from 300,000 units to 500,000 units, while seeking to build a new Electric Arc Furnace (EAF)-based integrated steel mill in Lusiana.
The business group plans to expand cooperation with U.S. companies in future industry sectors, such as robotics and AI and execute investments into energy-related infrastructure.
The United States is a country in which Hyundai Motor Group has made its largest-ever investment abroad.
Hyundai Motor Group’s latest investments are designed to strengthen its standing in the United States as a top-tier company by complying with the U.S. administration’s plan to rebuild the U.S. manufacturing industry and expand business opportunities in a variety of sectors.
Moving further, the business group plans to ramp up the competitiveness of the future industry, including mobility, by expanding a multifaceted business base and establishing itself as a sustainable company by elevating corporate trust.
The business group’s investments are expected to spur the dynamics of the Korean and U.S. economy, thus expanding economic relations between the two countries.
They are expected to lead the growth of Korea’s related industries and create new added value. Overseas investments the business group has made abroad are contributing to improving local brand values in foreign countries and raising global demand, thus leading to the growth of automobile and parts industries in Korea and forming a virtuous cycle structure.
In Korea, Hyundai Motor Group has been executing its investment of 24.3 trillion won this year, its largest-ever. Specifically, the business group plans to execute investments in automobiles, parts, logistics and steel, as well as future industry and energy sectors.
As for the automobile sector, Hyundai Motor Group will pour a combined $8.6 billion into building a system capable of procuring 1.2 million units annually in the United States.
Starting with Hyundai Motor Alabama plant, with a capacity of 36,000 units, which went into operation in 2004, the business group dedicated Kia Motors Georgia plant with a capacity of 340,000 units in 2010 and HMGMA with a capacity of 300,000 units this year, so the business group now has a production capacity of 1 million units annulaly in the United States.
First, the business group will expand the capacity of HMGMA by 200,000 units to 500,000 units.
Hyundai Motor Group will implement supplementary investments, such as modernization and efficiency of production facilities, so that the existing plants, such as the ones in Alabama and Georgia, can continue to produce high-quality cars.
The parts, logistics and steel subsidies of the business group, which have entered the U.S. market with Hyundai Motor and Kia Motors, will execute a combined $6.1 billion in investments.
The business group plans to raise the rate of localizing parts by expanding facilities, and locally procuring core EV parts, such as battery packs.
Hyundai Motor Group will also construct an EAF-based steel mill.
The steel mill, specializing in the production of low-carbon auto steel plates, is expected to cope with uncertain overseas risks, such as tariffs, through localizing automobile steel supply chains.
The steel mill will likely secure new growth engines by creating stable profits based on strong steel demand.
Hyundai Motor Group will execute $6.3 billion in he future industry and energy sectors.
The group will expand cooperation with prominent U.S. companies related to new future technologies, such as self-driving, robots, AI and AAM, while accelerating the commercialization of the business group’s U.S. corporations — Boston Dynamics, Supernal and Motional.
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