Alabama Woos Suppliers

The 3,500 residents of West Point, GA, are ecstatic that Kia Motors Corp. will construct a $1.2 billion assembly plant near their town (see story, p.11).

Kia's first U.S. production facility, to open in 2009, will employ at least 2,500 workers and make the local economy boom like never before.

But across the border in Alabama, state investment officials are enthusiastic, as well. They are hopeful of reaping huge investments and thousands of new jobs from Kia's parts suppliers.

Some 42 suppliers are located within their state supporting Hyundai Motor Co. Ltd.'s Montgomery assembly plant.

Kia already has said “five to six” major suppliers will set up operations in the West Point region, which is near Alabama's major industrial park at Opelika.

A large delegation of Alabama officials headed to South Korea in late March to liaise with existing and potential suppliers there.

They know from experience that Kia's parts suppliers are major employers. In fact, the supplier plant operations will provide more jobs than Georgia's Kia plant.