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Auto parts maker Shinhwa plans $114 million Alabama expansion

The growth project will create 50 jobs and add a new 170,000-square-foot production building on Shinhwa’s campus in Auburn.

Shinhwa's $114 million growth project will create 50 jobs and add a new 170,000-square-foot production building at the company's production site in Auburn. Shinhwa
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Governor Kay Ivey announced yesterday that Shinhwa Auto USA Corp. will invest $114 million to expand its manufacturing operation in Auburn to support the production of electric vehicle parts.

The growth project will create 50 jobs and add a new 170,000-square-foot production building on Shinhwa’s campus in Auburn Technology Park West. The expansion will be the South Korean company’s third since selecting the Alabama city as the site of its first U.S. plant in 2019.

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

Established in 1995, Shinhwa is a leader in the production of aluminum die casted parts for automotive manufacturers. After the Auburn facility opened in 2020 following a $42 million investment, it manufactured drive shafts for Hyundai Motor Manufacturing Alabama in Montgomery and the Kia plant in West Point, Georgia.

The company has since announced two expansion projects in Auburn, adding 90 jobs and an additional investment of $148 million to expand output of aluminum parts and meet future demands stemming from EV production.

“We are thrilled to be expanding our business yet again, building new state-of-the-art facilities in Auburn, Alabama, where Shinhwa has a successful business operation since 2019,”said Kwi Hyun Lee, chairman of Shinhwa Group.

“As one of the most innovative industrial manufacturers of aluminum car components, we are confident that the momentum we have achieved will continue to meet customers’ growing demand for high-quality products,” added Lee.

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With this new investment project, Shinhwa plans to increase capacity by expanding die casting operations and adding associated processes that are required to make control arm, knuckle, carrier and motor housing covers in support of Hyundai, Kia and other automakers in the U.S.

The project will support a new contract for EV parts. 

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

Shinhwa is committed to creating 50 jobs over the next three years, with an average annual salary of around $48,000, according to the Alabama Department of Commerce.

“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,” said Auburn Mayor Ron Anders. “We’re grateful for Shinhwa’s investment in Auburn and look forward to seeing them continue to thrive.”

The Alabama Political Reporter is a daily political news site devoted to Alabama politics. We provide accurate, reliable coverage of policy, elections and government.

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