South Korean auto supplier Samkee to open first US factory in Alabama
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South Korean automotive Samkee Corp. has finalized agreements with officials in Alabama to open its first U.S. factory in Tuskegee.
Gov. Kay Ivey announced the $128 million investment on Friday, adding that the project will create an estimated 170 jobs in Macon County with an average wage of $20.50 plus benefits.
“Alabama’s auto industry is filled with world-class manufacturing companies from around the world, and Samkee will fit right in with that group,” Ivey said in a statement. “We’re proud that the company selected Alabama for its first U.S. production center and look forward to seeing it grow and thrive in the coming years.”
Samkee manufactures die-cast aluminum products, like engine parts, transmissions and electrical vehicles. Currently, the company’s factories are in South Korea and China.
An analysis from the Center for Business and Economic Research at the University of Alabama predicts that the project will generate $140.2 million in annual economic output in Macon County, contributing more than $37 million to the county’s GDP and generating $1.3 million per year in taxes.
Officials estimate that production in the Alabama factory will begin in 2024. Then, Samkee will serve as a Tier 1 supplier — or direct supplier — to Hyundai.
“Samkee is a worldwide leader in quality manufactured aluminum die cast products,” Samkee CEO Chi Hwan Kim said in a statement. “Our Tuskegee plant will allow our company to serve the North American market along with Hyundai’s market growth for both combustion engines and transmissions, as well as electric vehicle and battery parts.”
Macon County leaders are excited about the investment, promising upgrades to the local water and sewer system and the installation of a new power substation to accommodate the project.
"Today's announcement is another major step in Tuskegee's progression as a city,” Tuskegee Mayor Tony Haygood said. “Samkee will be a great community partner for years to come and an example of how Tuskegee is open for business in the 21st century marketplace.
According to Ivey, the Utilities Board of Tuskegee served “a major role in the recruitment.”
The city’s wastewater system has been a point of concern for several years, with the system overflowing when there is an influx of stormwater. The Utilities Board received a $384,000 grant from the Appalachian Regional Commission in September 2021 to resolve the most pressing issues, but more upgrades are planned for the coming months.
Utilities Board General Manager Gerald Long said Samkee’s presence in Tuskegee will allow the board to expand its system to better serve the community.
Before selecting Tuskegee, Samkee considered more than 30 communities in multiple states, according to the Tuskegee Area Chamber of Commerce.
Macon County Economic Development Authority Director Joe Turnham said the efforts to bring Samkee and its jobs to Tuskegee have been happening over a year.
"Samkee appreciated the local assets, spirit of cooperation and friendship developed over time with Macon County. We have strived with our stakeholders in a team effort to meet Samkee's needs,” Turnham said in a statement. “This is obviously a big win for our community and its citizens."
The Samkee factory is now under construction on 44.42 acres in the Tuskegee Commerce Park.
Hadley Hitson covers the rural South for the Montgomery Advertiser and Report for America. She can be reached at hhitson@gannett.com. To support her work, subscribe to the Advertiser or donate to Report for America.
This article originally appeared on Montgomery Advertiser: South Korean auto company Samkee to open first U.S. plant in Alabama
