Investment in Savannah: Daechang Seat Corp. Joins Other Korean Suppliers Near Hyundai Meta Plant
The automotive industry has been shifting rapidly in recent years, with a particular emphasis on electric vehicles (EVs). South Korean automaker Hyundai has been quick to respond to this trend, and is currently constructing its first dedicated EV factory in the US. In the wake of this development, other Korean companies are following suit and investing in the area. One such company is Daechang Seat Corp., which has recently announced a $72.5 million investment in Savannah, Georgia. The purpose of this investment is to establish a facility that will manufacture seat frames for cars with the aid of automated processes and robotic welding machines. In this opinion editorial, we will take a closer look at this development and its potential implications.
The Arrival of Daechang Seat Corp.
Daechang Seat Corp. will join two other Korean suppliers that have already established a presence in the Savannah Chatham Manufacturing Center. It is notable that this manufacturing center is in close proximity to the Hyundai Meta Plant, the aforementioned EV factory. As a result, Hyundai will now benefit from a local supplier for its seat frames. Daechang Seat Corp. is no stranger to working with Hyundai, as it already collaborates with key suppliers Hyundai Mobis and Hyundai Transys. The company aims to work on even more projects with these companies in the future, according to Jinsuk Lee, CEO of the local operation, Daechang Seat Savannah Corp.
The Global Reach of Daechang Seat Corp.
Daechang Seat Corp. is one of the largest seat frame producers globally, with factories in Korea and seven other countries, including China, India, Turkey, Poland, Indonesia, Czech Republic, and Slovakia. Its customer base includes not only Hyundai and Kia but also global automakers such as Toyota, Ford, Chrysler, Volvo, and Volkswagen. In 2022, the company achieved 1.4 trillion won in sales, approximately $1 billion. Its corporate headquarters is located in Dongtan, south of Seoul.
Daechang Seat Corp.'s Presence in the US
Daechang Seat Corp.'s presence in the US is currently limited to its factory in Phenix City, Alabama, just across the state line from Columbus, Georgia. The factory was established in 2020, and the company invested $9 million in its creation. This was followed by a reported $40 million expansion in 2022. By investing in Savannah, Daechang Seat Corp. is expanding its presence in the US and moving closer to Hyundai's EV factory.
The Ripple Effects of Hyundai's Investment
Hyundai's $5.5 billion investment in the area along Interstate 16 is having far-reaching effects. Gov. Brian Kemp of Georgia noted that suppliers for the Hyundai Meta Plant are present in nine counties, demonstrating the economic boost that Hyundai's investment is bringing to the region. The Georgia Department of Economic Development has also been recognized by The Korea Society for its skill in welcoming Korean firms, particularly those that are engaged in the US energy transition. This recognition highlights Georgia's commitment to fostering a welcoming environment for foreign investment.
Conclusion
The investment by Daechang Seat Corp. in Savannah is an indication of the growing importance of the automotive industry's shift towards EVs. With Hyundai's EV factory coming online, it is likely that more Korean companies will invest in the area to take advantage of the opportunities presented by this new development. Georgia's skilled handling of foreign investment, as recognized by The Korea Society, will also be a factor in attracting new businesses to the area. As the automotive industry continues to evolve, it is crucial to keep an eye on these developments and their potential implications for the future.
Originally Post From https://www.globalatlanta.com/new-korean-supplier-to-land-in-savannah-investing-72m-and-hiring-500/
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