Hanon to build $40 mn heat pump systems plant in US state of Georgia

Hanon Systems Corp., a South Korean thermal management systems provider for automakers, is set to inject $40 million to establish a plant in the US state of Georgia. The new facility, set to begin operations in May 2024, will accelerate Hanon’s supplies for electric vehicles (EVs) to Hyundai Motor Group, Ford Motor Co. and other global clients.

The Bulloch County-based plant will assemble automotive thermal solutions and create 160 new jobs, the office of Georgia Governor Brian Kemp announced on Tuesday.

“Georgia’s automotive and e-mobility industries continue to grow as we proudly welcome Hanon Systems to Georgia,” said the governor.

“As our state furthers its position as the EV capital of America, new jobs and opportunities like these are coming to hardworking Georgians all over the state and will continue to do so,” he added.

The announcement aligns with Hanon’s strategy to support the industry shift toward electrification while growing the company’s footprint in North America, said Min Sung, president and chief executive of Hanon.

Hanon will intensify its heat management systems production in the US as global automakers are increasing manufacturing in the country under the United States-Mexico-Canada Agreement (USMCA), which took effect in July 2020 to incentivize automotive parts made in North America.

The new plant will also provide its heat management systems to Hyundai Motor Group Metaplant America LLC (HMGMA), a dedicated EV plant under construction in Brian County, Georgia. Hyundai Motor Co. broke ground on a $5.5 billion EV and battery plant in the state last October, with an annual production capacity target of 300,000 EVs.

The new plant will begin operations as early as the third quarter of 2024, with a possible expansion in annual production to 500,000 EVs.

Hanon offers a variety of solutions in heating ventilation and air conditioning; powertrain cooling; compressor; fluid transport; and electronics and fluid pressure. It was named Supplier of the Year by General Motors two months ago, earning the same title for six consecutive years, by exceeding GM’s requirements and providing innovative technologies with high quality.

Other Korean car parts suppliers are also set to expand their production in the US as global automakers accelerate EV manufacturing in the region.

Ajin Industrial Corp., which directly supplies auto parts such as fenders to Hyundai, will inject 440 billion won ($334.1 million) to establish an EV components plant in Georgia.

Ecoplastic Corp., a leading supplier of plastic parts like exterior bumpers and interior consoles, will build a $205 million plant in the same state to supply Hyundai Motor’s EV and battery plant to be built nearby.

Seoyon E-hwa Co., which provides car interior parts such as door panels, bumpers and seats to Hyundai Motor, announced last week it will invest $4.2 million to expand production in Alabama state.

Write to Nan-Sae Bin at binthere@hankyung.com

Jihyun Kim edited this article.