Korean Auto Parts Maker Sungwoo Hitech Makes Tennessee Its First U.S. Location
Washington County and the State of Tennessee’s Department of Economic Development and the Tennessee Valley Authority teamed to successfully secure an agreement with Sungwoo Hitech, a Korean auto part supplier, to locate its first U.S. manufacturing facility, Sungwoo Hitech America Corp, at the county’s industrial park in Telford. Phase one of the project will involve a $40 million investment and create 117 new jobs by 2025.
“This is an historic day for creating new manufacturing jobs for Washington County and our region,” says Washington County Mayor Joe Grandy. “I want to thank Governor Bill Lee, Tennessee Economic Development Commissioner, Bob Rolfe, Mr. Myung-Keun Lee, Chairman and CEO of Sungwoo Hitech and our Washington County Commissioners for making today possible.”
Sungwoo Hitech America has purchased the former Alo Tennessee, Inc. production facility to begin operations in the U.S. The 380,000 square foot facility was the largest existing manufacturing structure available in Northeast Tennessee.
Law firm K&L Gates LLP is pleased to have assisted Sungwoo Hitech with its site selection and economic incentives process for its first U.S. factory in Tennessee.
Sungwoo Hitech manufactures metal stamped components for the automotive industry with 17,500 employees at 26 production facilities in 10 countries around the globe. The company’s Telford facility will produce bumpers, rear components and side framing for customers including General Motors, Hyundai, Kia, Volkswagen, and BMW. Renovations on the 380,000 square foot facility are underway and manufacturing is slated to begin in early 2022.
“We welcome Sungwoo Hitech America to Tennessee and appreciate the company’s decision to call Washington County home to its first U.S. manufacturing operations. This $40 million investment will bolster our state’s reputation as a leader in automotive manufacturing while providing nearly 120 job opportunities in Northeast Tennessee,” said Governor Bill Lee.
“South Korean companies employ nearly 3,500 Tennesseans, and of that, more than 1,000 are employed in the manufacturing industry. We want to thank the Sungwoo Hitech America for choosing to locate in Telford and congratulate the company for becoming the first Korean-owned manufacturing facility in Washington County,” said Bob Rolfe, Commissioner of the Tennessee Department of Economic and Community Development.
“Sungwoo Hitech America will pay at least $17 an hour to its workers for an average annual salary of $35,000 as part of an agreement with Washington County for some tax concessions,” says Alicia Summers, Vice-President of Business Development the Northeast Tennessee Economic Partnership (NETREP). “Sungwoo Hitech will make a great addition to our manufacturing sector. We appreciate the confidence the company has placed in our county and region.”
“Today’s announcement is evidence that our county, region and the State of Tennessee offer compelling reasons for global manufacturing companies to call this part of Tennessee their new home,” says Philip Cox, Chairman of NETREP. “The Washington County Industrial Park will continue to be an important investment for creating jobs and enhancing our tax base for years to come.”
The Washington County Industrial Park has become a hub for global auto manufacturer in the region and state. Sungwoo Hitech America will join JTEKT/Koyo, with 150 employees, and Nakatetsu with 81 employees, are both Japanese auto component manufacturers, at the park. Later this year ebm-papst, a German components manufacturer will break ground on its new facility at the park and will employ 200 workers from Washington County and the region.
MEDIA INQUIRIES :
Alicia Summers
Tele: (423) 794-9173
E: Summers@NortheastTN.com