Kamtec Auto USA will open its first US manufacturing facility in Auburn, Alabama, through a $9.2m investment expected to create around 50 jobs.
The South Korean automotive supplier said the new site will produce advanced technical components for engine control and electric management systems for hybrid vehicles.
The investment represents Kamtec’s entry into US manufacturing operations as it increases production capacity to serve automotive customers in the region.
Chang-Yeong Seo, president of Kamtec Auto USA, said Auburn’s location near Hyundai Motor’s manufacturing facility in Montgomery, Alabama, and Kia’s plant in West Point, Georgia, would allow the company to make and supply products locally for the US market.
Chang-Yeong said: “We look forward to partnering with Auburn University to identify talent for our technical positions. We are deeply grateful for the unwavering support of the City of Auburn and the State of Alabama, and our goal is to contribute to the balanced, sustainable growth of our customers, partners, employees and the communities in which we operate.”
Founded in 2001, Kamtec is an affiliate of Seoul-based Seohan Group, which has maintained a presence in Auburn since 2007.
The company said it will begin operations in a leased facility in Auburn before moving to a dedicated manufacturing plant to be built by Seohan Auto USA.
Alabama Commerce Secretary Ellen McNair added: “This is a win for Alabama and a great example of how automotive manufacturers in our state create opportunities for our communities by capturing follow-up investments by their suppliers.”
Separately, in April Mercedes-Benz announced plans to invest $4bn in its Tuscaloosa, Alabama facility by 2030 to increase SUV production and localise a new model.
The company said this forms part of a wider investment plan of more than $7bn across its US operations in the coming years.
Mercedes-Benz’s Tuscaloosa plant has been in operation since 1997 and has produced more than 4.5 million vehicles.
A new core segment model will be added from 2027 and is intended for US customer preferences.
