Kia to Build Assembly Plant, Invest $1.2 Billion in Georgia

SEOUL, March 13, 2006 – At a signing ceremony today in Seoul, Governor Sonny Perdue and Kia President and CEO E.S. Chung announced that Kia Motors Corporation will build an automotive assembly plant in the city of West Point, Georgia, creating more than 2,800 jobs at the plant and making a $1.2 billion economic investment in the state. The business deal includes a commitment from five supplier companies to locate in Georgia, bringing an additional 2,600 jobs for Georgians.

 

"Georgia has a strong presence in the automotive industry and has long delivered the right resources and talent to help companies thrive," said Governor Sonny Perdue, who laid the initial groundwork on the project during an October 2003 meeting with company officials in Korea. "Kia's decision to locate its first U.S. assembly plant in Georgia is a testament to the tools, experience and know-how Georgia will deliver to one of the automotive industry's leading innovators."

 

The new assembly plant, scheduled to begin testing operations by May 2008 and reach full production by 2009, will build two vehicle lines and include an engine assembly line, paint shop, training center, welcome center and two adjacent supplier facilities. To bring the plant online as quickly as possible, the Georgia Department of Technical and Adult Education's (DTAE) Quick Start program will build and staff an on-site training center to provide custom training and serve as a community training center.

 

The new, two-million-square-foot assembly plant will be built on a portion of a 3,300-acre site at the intersection of I-85 and Webb Road in Troup County. About 2,200 acres will be dedicated to the plant and future expansions. The remaining property will be used for roadwork and other infrastructure improvements. The company, owned by Korea-based Hyundai Motor Company, anticipates the plant will produce 300,000 vehicles per year.

 

"Kia Motors has entered an aggressive growth phase in the U.S. and the decision by KMC to build a manufacturing facility in West Point, Troup County, Georgia is the latest example of the company's commitment to the marketplace," said E.S. Chung, President and CEO, Kia Motors Corp. "Kia has made tremendous investments in design, engineering and production resources to better meet the needs and desires of American consumers, and this new plant will produce high quality, well-styled vehicles with the safety features and affordability that customers expect from Kia."

 

Troup County, located in west Georgia, will see a significant economic boost from the opening of the Kia facility. In addition to the assembly plant, the five supplier companies that have committed to locate near the Kia site in Georgia will fit into Kia's 'just-in-time' inventory strategy. The 'just-in-time' strategy seeks to streamline production time and costs by locating parts and materials suppliers in close geographic proximity to the assembly plant. These five suppliers will employ an estimated 2,600 workers.

 

"This plant and its associated suppliers represent economic revitalization for this community," said Diethard 'D' Lindner, chairman of the Development Authority of LaGrange. "Not only will Kia bring jobs, it will drive the creation of an industry cluster that will help ensure future prosperity for the entire area."

 

Kia joins a long line of Georgia-based automotive companies dating back to 1909. These companies, representing all stages of the supply chain, access innovative new technologies via eight research universities, employ a skilled and dedicated workforce, efficiently ship goods around the world via an integrated logistics network and enjoy a competitive cost of doing business.

 

The state effort was led by Governor Perdue with assistance from the staff of the Georgia Department of Economic Development (GDEcD). Local organizations involved include the Development Authority of LaGrange, the LaGrange-Troup County Chamber of Commerce, the West Point Development Authority, the cities of LaGrange and West Point, and Troup County.

 

"Kia looked at locations throughout the Southeast and our team effort, led by Governor Perdue, helped put Georgia at the top of the company's list," said GDEcD Commissioner Craig Lesser. "Our state continues to grow and prosper because of our abundant resources and strong partnerships."