thinkpool

March 12, 2007

News release from Gov. Riley's office:

MONTGOMERY, AL - Governor Bob Riley announced today that Hyundai Motor Corp. will construct a second engine plant at its Montgomery production facility, creating 522 new jobs. The new engine plant will supply both the existing Hyundai operation and the new Kia plant being built just across the Alabama line in Georgia, Governor Riley said.

"This is another tremendous boost for Alabama's growing economy and automotive industry. The hundreds of new jobs, both at the plant and at the Tier 1 suppliers, is great news for the residents of Alabama," Governor Riley said. "We appreciate Hyundai's continuing faith in the State of Alabama and in the City of Montgomery as great places to do business."

Hyundai is investing approximately $270 million to construct the 349,440-square-foot building, which will manufacture 2.4-liter 4-cylinder Theta engines, enabling

Hyundai to serve its growing manufacturing operations in the United States, including supplying engines to the new Kia plant. The expansion also includes a 533,000 square-foot consolidation center and a container yard.

Hyundai Motor Company Vice Chairman Dr. Dong Jin Kim said that the new engine plant further solidifies Hyundai's commitment to Montgomery and the state of Alabama. "After less than two full years in operation, our partnership with the state of Alabama, the City of Montgomery, Montgomery County and the Montgomery Area Chamber of Commerce continues to bear fruit in the form of hundreds of new jobs and millions of dollars of additional capital investment. We want to thank the state and local elected officials and government representatives who have worked hard to make this new project possible."

Joo Soo Ahn, HMMA's President & CEO, said that even more investment and more jobs will soon follow when additional Tier 1 and Tier 2 suppliers locate nearby to help support the manufacture of these additional engines. "While the exact number of suppliers

has not been determined, initial estimates are that it could require as many as 4 or 5 new Tier 1 suppliers who would invest another $125 million in capital and hire another 400 employees in the River Region."

Project construction is scheduled to start immediately and the first engines from the new facility are scheduled to be mass produced by September 2008. Hyundai's plant currently produces the 3.3-liter, 6-cylinder Lambda engines and employs more than 3,100 team members