Hyundai Motor is in talks with Georgia to establish a new factory… Share price rises by 3%
The share price of Hyundai Motor Company is rising as foreign media reports that Hyundai Motor Company will announce the establishment of a $7 billion (about 9 trillion won) factory in Georgia, USA. However, Hyundai Motor Company announced on the afternoon of the 13th that although it is true that the US state government is negotiating with the US state government to invest in the establishment of an electric vehicle plant, the scale or timing has not been decided.
On May 12 (local time), the Associated Press and Georgia state media, Atlanta Journal Constitution (AJC), etc. reported that Hyundai Motor Company and the Georgia government would jointly announce a plan to establish an electric vehicle plant on the 20th (Eastern time, US). Reportedly, the site of the plant’s establishment is near Savannah in eastern Georgia.
AJC said, “Hyundai will make an announcement in line with President Biden’s visit to Korea, and Georgia Governor Brian Kemp will officially announce the plan in Savannah.” “Hyundai Motor and the Georgia government have already finished the negotiations and plan to produce electric vehicles and batteries for Hyundai Motor and Kia brands at the new plant to be built,” he added.
The factory site was also revealed. Local broadcaster ‘Savannah Morning News’ released photos of 2284 acres (9.24 million square meters, 2.7 million pyeong) in Savannah Bryan County on the same day and reported that “Hyundai Motor’s new factory will be built here.” The site was purchased by the Savannah Economic Development Authority of Georgia for $61 million (about 76.2 billion won) in May last year.
On the afternoon of the 13th, Hyundai Motor said, “It is true that negotiations are ongoing with the US state government regarding the investment to establish an electric vehicle plant, but the scale or timing has not been determined.” The situation was set up. There are speculations that the Georgia state government is in the final stages of coordination over incentives such as tax benefits and land support in relation to the attraction of electric vehicle factories.
Meanwhile, Hyundai Motor Group’s entry into the US has been going on for a long time. Starting with the Alabama plant in 2006, the Kia plant opened in Georgia in 2009. In a situation where only internal combustion engine cars are being produced so far, there are high expectations for synergy effects for electric vehicles as many domestic electric vehicle parts makers, including SK On, have entered Georgia. If Hyundai Motor’s electric vehicle plant is actually built, a value chain is expected to be formed centered in Georgia.
On the news of negotiations with the Georgia state government, Hyundai Motor shares have maintained a 3% rise until the very last minute. As of 3:09 pm on May 13th, it is trading at 186,000 won, up 3.05% from the previous trading day.
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