Hyundai’s automotive parts division, Hyundai Mobis, has announced that it is planning to invest $30 million to set up a factory in the United States to begin operations in 2005. It will supply Hyundai Motor‘s new assembly facility.

The parts factory will be built in Montgomery County in Alabama, with construction starting early next year, Hyundai Mobis said in a statement.

The plant will make 300,000 units each of car seats and chassis modules annually, for a ‘midsize sedan model and a minivan model that Hyundai Motor will make in its first US plant,’ Hyundai Mobis said.

“After thorough reviews and discussions with the US government, we have chosen Montgomery over the other four sites on belief that the area will provide better employment conditions, tax benefits, and possibility of further road expansion,” Hyundai Mobis said.

Hyundai Motor’s combined manufacturing and assembly facility – also in Montgomery – will produce the next generation designs of both the Sonata sedan and the Santa Fe sport utility vehicle (SUV) for North America. Production starts in 2005.

At peak production, the facility will employ approximately 2,000 people and produce 300,000 vehicles per year. The site will include a manufacturing and assembly facility, as well as a stamping plant and an engine plant.