Hyundai pours $290M into upgrades at Montgomery plant

Hyundai plans to invest $290 million into upgrades at its Montgomery assembly plant, the automaker announced Wednesday.

That includes a $190 million investment to retool and upgrade the production line ahead of launch of the company's fifth-generation Santa Fe SUV. The other $100 million will "support ongoing production" of the current Tucson and Santa Cruz models, Hyundai Motor Manufacturing Alabama President and CEO Ernie Kim said. The plant also makes electrified and gas versions of the Genesis G70 luxury SUV.

The company made the announcement Wednesday at the plant, with Alabama Gov. Kay Ivey cheering the news alongside leaders from the city, county and the Montgomery Area Chamber of Commerce. No new jobs were announced ahead of the expansion, though Ivey noted that the plant currently employs nearly 4,000 people.

Kim said that Hyundai employs about more than 40,000 people statewide, including suppliers.

"I can’t wait to see the exciting new design on roads in Alabama and across the nation," Ivey said.

This will be the first full redesign for the Santa Fe since 2018, the company said. It features a new exterior design, an enlarged tailgate and cabin, a more refined interior with sustainable materials and high-tech features including a 12.3 inch Panoramic Curved Display. The new Santa Fe will go into production later this year.

Ivey credited part of Hyundai's success to its Alabama workforce. “Made in Alabama with pride is our winning strategy," Ivey said. She noted that Hyundai is a leader not just in the United States but also Canada and Mexico.

The company has faced allegations of underage labor in its Alabama supply chain, leading to fines for the plants involved and a wider push by lawmakers and company officials to stiffen penalties and improve oversight.

Hyundai built its first North American plant in Montgomery and has since expanded 16 times while investing a total of $3.37 billion into those expansions, Chamber Board Chair LaBarron Boone said.

“Montgomery is on fire," Boone said. "The momentum is unbelievable but I want to take the time as the chairman (to say) that we truly know that you were one of the sparks to this momentum."

Alex Gladden is the Montgomery Advertiser's public safety reporter. She can be reached at agladden@gannett.com or on Twitter @gladlyalex.

This article originally appeared on Montgomery Advertiser: Hyundai pours $290M into upgrades at Montgomery plant