TUSKEGEE, Alabama — The automotive sector in the United States has received a significant boost with the grand opening of a new car parts factory in Tuskegee, Alabama. Commerce Secretary Ellen McNair joined Samkee Corp. officials and local leaders to celebrate the inauguration of this state-of-the-art production facility located in the Tuskegee Commerce Park.
Samkee Corp., a South Korea-based automotive component specialist, has invested $128 million in establishing its first manufacturing footprint in the U.S. This new car parts factory is projected to employ over 170 individuals at full capacity, injecting substantial economic vitality into rural Macon County.
“Samkee’s arrival is a premier addition to Alabama’s thriving automotive industry, and the unveiling of this advanced facility in Tuskegee underscores the sector’s continued momentum within our state,” stated Commerce Secretary McNair. “I am confident that Samkee will experience significant growth and success in its new U.S. industrial base, mirroring the positive trajectory of numerous other companies in Alabama.”
The inauguration ceremony at the Tuskegee plant was attended by over 300 stakeholders from the company, state, and local levels, marking the culmination of a project initially announced in February 2023.
Established in 1978, Samkee specializes in producing critical automotive aluminum components. Their product range includes essential parts for engines, transmissions, electric vehicles, and batteries, alongside various alloys. Samkee already operates several established Car Parts Factories in South Korea, and this new venture represents a strategic expansion into the U.S. market.
This new Tuskegee facility will function as a Tier 1 supplier, primarily serving Hyundai Motor Manufacturing Alabama’s assembly plant in Montgomery. This strategic partnership highlights the crucial role of car parts factories like Samkee in supporting major automotive manufacturers.
“We are thrilled to establish our inaugural U.S. manufacturing presence here in Tuskegee. This achievement was made possible through the robust support and leadership at the state and local levels, as well as the collaboration from the entire community,” remarked Chihwan Kim, CEO of Samkee Corp. “This significant investment will facilitate our continued sustainable growth within the automotive industry and strengthen the automotive supply chain within the U.S.”
Strong Support System for New Car Parts Factory
The Samkee project benefited from extensive community support, encompassing site enhancements, upgrades to access roads, and modernized utilities. These improvements are not only crucial for Samkee’s operations but also enhance the infrastructure of the Tuskegee Commerce Park, benefiting other businesses within the area. Furthermore, the construction of a new electrical substation is underway to meet Samkee’s anticipated future energy demands, showcasing the forward-thinking approach of the local infrastructure development.
“The City of Tuskegee expresses its profound gratitude and excitement in embarking on a promising future with our newest partner, Samkee America,” said Tuskegee Mayor Tony Haygood. “Our rapid progress and success in such a condensed timeframe exemplify what can be achieved through unified collaboration. The new employment opportunities and investments throughout the county will provide enduring benefits for our residents.”
The Utilities Board of Tuskegee (UBT) played a pivotal role in attracting Samkee to the region. UBT General Manager Gerald Long emphasized the significance of the grand opening as a landmark achievement for the community.
“UBT is proud to welcome Samkee to Macon County,” Long stated. “Securing this project was a challenging but rewarding endeavor. We are committed to ensuring Samkee’s entry into Tuskegee is both successful and prosperous.”
The Macon County Economic Development Authority (MCEDA) was also instrumental in facilitating Samkee’s establishment in Tuskegee.
“An immediate bond of trust and cooperation developed between Samkee and our community, culminating in this remarkable outcome,” stated MCEDA Executive Director Joe Turnham. “We have wholeheartedly welcomed Samkee into the Macon County community. Samkee’s motto, “Casting the Future,” now resonates with Macon County as we jointly shape our future.”
Economic Impact of Car Parts Factories in Macon County
The establishment of Samkee’s car parts factory is anticipated to generate substantial economic benefits for Macon County. An analysis conducted by the Center for Business and Economic Research (CBER) at the University of Alabama projects a $140.2 million annual increase in economic output within Macon County directly attributed to the Samkee factory. This economic activity is expected to contribute over $37 million to the county’s GDP, signifying a major economic uplift.
Moreover, the project is estimated to generate nearly $1.5 million in new direct tax revenues annually for local schools and community services. This financial boost will enhance public services and infrastructure within the region, further improving the quality of life for Macon County residents.
Brenda Tuck, Rural Development Manager for the Alabama Department of Commerce, highlighted Samkee’s investment as evidence of Alabama’s rural counties’ continued attractiveness for foreign direct investment, particularly within the automotive industry and related car parts factories.
Since 2015, foreign companies have invested over $2 billion in growth projects across rural Alabama counties. A significant portion of this investment is concentrated in auto-related projects, according to data from the Alabama Department of Commerce. This trend underscores Alabama’s growing prominence as a hub for automotive manufacturing and car parts factories.
“Alabama’s rural communities provide manufacturers like Samkee with all the essential elements necessary for achieving long-term success in their ventures,” Tuck concluded. “It is evident that opportunities are flourishing in Alabama’s rural communities, and the global business community is increasingly recognizing and capitalizing on these possibilities.”
