SEOUL, May 30 (Yonhap) — Hyundai Motor Co. said Wednesday it will invest 419 billion won ($388 million) to construct an engine head production facility at its existing Alabama plant.
Engine heads to be produced at the Alabama plant will be used in new models of the Sonata and Elantra sedans. The head machining plant is scheduled for completion in November, South Korea’s biggest carmaker said in a statement.
The Alabama plant will have further room to produce engine products in addition to its two existing engine assembly lines.
Hyundai plans to begin producing the Theta III engine for the Sonata sedan and the Santa Fe SUV in early 2019 in the southern U.S. state. It will continue to produce the 2.0-liter Nu engine for the Elantra subcompact there, the company said.
Hyundai produces about 700,000 engines a year at its plant in Montgomery, Alabama, to support vehicle production there, and Kia Motors Corp.’s plant in West Point, Georgia.
Hyundai and Kia together form the world’s fifth-biggest carmaker by sales.
Hyundai Motor’s Alabama plant (Yonhap)
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