A South Korean auto parts supplier, Daechang Seat Corp., has set its sights on Georgia as it prepares to establish a new manufacturing facility worth $72.5 million in the vicinity of a forthcoming Hyundai Motor Group plant. The company, headquartered in Gyeongju, South Korea, made the official announcement on Monday, underlining its commitment to invest in a state-of-the-art plant in Savannah, which will ultimately employ over 500 individuals.
This development aligns with the growing trend of companies investing in facilities to support Hyundai’s monumental $7.6 billion project focused on the assembly of electric vehicles and batteries, located in Ellabell near Savannah. This ambitious Hyundai initiative, unveiled last year, aspires to create a workforce of up to 8,500 employees and initiate vehicle production as early as 2024. To realize this vision, suppliers to the Hyundai plant have collectively pledged to invest approximately $2.3 billion in capital and hire around 5,800 workers.
Notably, Daechang Seat Corp. has already made inroads into the U.S. market, having established a factory in Phenix City, Alabama, in 2019. The company made headlines once again last year when it announced a $23.4 million expansion of its Phenix City operations. This expansion encompasses the construction of a new facility and the hiring of an additional 300 employees. As a global player, the company employs more than 5,000 individuals across seven different countries.
Jinsuk Lee, the CEO of Daechang Seat Savannah Corp., expressed the company’s overarching objective: “Our primary objective is to drive the growth of DSC through facility expansions, ultimately transforming DSC into a global entity.” This statement underscores the company’s commitment to fostering its global presence and securing a foothold in the ever-competitive automotive industry.
For prospective employees at the Savannah facility, the outlook appears promising. The average wage for workers is set to exceed $18 per hour, excluding the potential for bonuses and comprehensive benefits, as noted by Angela Hendrix, a spokesperson for the Savannah Economic Development Authority. Additionally, the state of Georgia is set to facilitate workforce development by covering the costs of training.
Moreover, Daechang Seat Corp. stands to benefit from various incentives aimed at promoting economic growth. The company could potentially qualify for $10 million in state income tax credits, amounting to $4,000 per job over a span of five years, provided that employees earn a minimum of $31,300 annually. Local authorities have further extended a 15-year property tax reduction, anticipated to result in savings of approximately $5.8 million for the company. Furthermore, local officials have offered the land for the plant at a reduced rate, further bolstering the attractiveness of Georgia as a destination for Daechang Seat’s expansion efforts.
