A multi-million dollar expansion is about to get underway at the Montgomery based Hyundai automobile manufacturing plant. The plant will undergo a $173 million expansion as part of an upgrade to its engine facility.
The expansion will create an estimated 214 jobs.
Hyundai Motor Manufacturing Alabama, LLC, President and CEO Young Deuk Lim made the announcement Monday morning at the state capitol.
"Hyundai strives to make its products close to its assembly plants," Lim said. "The enhancements to the engine plant increase our capacity and the ability to implement new technologies."
"This is a great day for the City of Montgomery, the State of Alabama and Hyundai Motor Manufacturing Alabama," said Alabama Gov. Robert Bentley. "All of us will do everything we can to make this expansion successful and seamless."
Hyundai Motor Manufacturing Alabama will produce the 1.8 liter Nu engine, which is replacing the Lambda engine at its manufacturing facility in Montgomery. The Nu engine will be used in the Elantra, which is manufactured at the Montgomery plant. The engine plant expansion will also increase HMMA's capacity to produce Theta engines for the Sonata, as well as, the Santa Fe and Sorrento at the company's sister plant, Kia Motor Manufacturing Georgia in West Point.
Officials say the capital investment of $163 million will be spent on equipment for the engine plant and the remaining $10 million will go towards the actually expansion of the building. When complete, the engine facility will be 362,155 square feet.
Construction on the Theta/Nu engine plant is scheduled to be completed in the fall and production will begin in March 2012. HMMA, the River Region's largest manufacturer, employs 2,645 people directly.
The Theta/Nu engine plant will produce 300,000 units a year.
"HMMA has been a great partner and has had a significant impact on the River Region's economy. Hyundai has played an important role in making Montgomery a better place to live, work and play," said Montgomery Area Chamber of Commerce Chairman Larry Puckett.