Hyundai Mobis Co., Korea’s largest supplier of automotive components and an affiliate of the carmaker is targeting sales of 120,000 modules worth $370 million this year, 250,000 units worth $750 million next year and 300,000 units worth $900 million in 2007 from its new $120 million Alabama module plant which has an annual production capacity of 300,000.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The Korea Herald said the module plant, set up to supply Hyundai’s new car factory nearby, employs just 650 local residents as it is equipped with the latest automation systems such as the vision tester which prevents the use of wrong components by identifying them.
In efforts to enhance productivity, Hyundai Mobis also adopted a electric monorail system in which products are moved by a monorail attached to the ceiling. This allows continuous manufacturing process, without stopping a conveyor belt and provides more comfortable working conditions for the employees, according to Mobis.
The factory is scheduled to begin two-shift production in mid-July, when the number of employees will be increased to 830.
The American workers, trained in Korea, get paid by the hour in addition to health insurance of $600 per month.
As the factory is union-free, a Team Relations staff takes care of the employees’ complaints.
“I was deeply impressed by the production environment of Mobis both in Korea and in Alabama. It is as good as that of General Motors,” James Sulton, module manager who had worked at the US automaker before joining Mobis Alabama, told The Korea Herald.
“The training course in Korea was a good opportunity for us, who barely knew about the country, to learn about the Korean culture and adapt more quickly to the Mobis production line. We also think the Koreans here are very kind and polite as they try to maintain a good relationship with us,” said the 44-year-old manager.
According to Rhyoo Hee-man, director of Hyundai Mobis Alabama, the employees’ skills are improving thanks to the training sessions, although the production speed is slower than in Korea.
“We plan to concentrate on achieving the best quality via constant training while we expect to reach annual production of 300,000 modules earlier than 2007,” said Rhyoo.
The Korea Herals said Mobis is provided with module components from three local suppliers and 14 Korean parts makers that set up plants in Alabama.
The suppliers, located within 70 miles or so, include Mando Corp., producer of brake systems and steering components, and Halla Climate Control Corp., maker of air-conditioning and heating systems.
After the chassis module, cockpit module, bumpers and door trims are manufactured at the Mobis plant, they are delivered “just in sequence” to the nearby Hyundai Motor assembly line which aims to produce 73 units per hour, the Korea Herald said.
