HMGMA and Hyundai Logis at the Center
Forming a basic structure connecting Hanon Systems, Seohan, and Sewon
According to industry sources on the 3rd, companies that have entered into joint ventures to support Hyundai Motor Group's U.S. electric vehicle plant, HMGMA (Hyundai Motor Group Meta Plant America), have formed a triangular structure centered around HMGMA and Hyundai Logis. This strategic positioning takes into account stable parts supply as well as future considerations such as wastewater treatment.
As of this month, eight parts companies have been confirmed to participate in supplying electric vehicle components for HMGMA. These companies include Hyundai Mobis, Hanon Systems, Eco Plastic, Ajin Industrial, Sewon, Seoyon E-Hwa, Seohan Group, and PHA (formerly Peaceful Corporation). They are constructing factories in various locations, including Bryan County, Bulloch, Chatham, and Liberty Counties. All of these locations are directly associated with HMGMA and form a triangular structure centered around it.
In particular, the factory sites of these parts companies are adjacent to Hyundai Logis, which is directly connected to HMGMA and the Georgia Port. This reflects a strategic choice considering smooth parts supply to HMGMA. With the support of local transportation authorities, the development of infrastructure along Hyundai Logis is gaining momentum, and it is expected that the utilization of Hyundai Logis will increase as there are no separate public transportation routes.
Last year in September, the Georgia Department of Transportation (GDOT) confirmed plans to develop road infrastructure near HMGMA and allocated a total of $200 million (approximately KRW 270 billion) by 2027. The plans include expanding the I-16 interstate highway and the US280 local highway intersection. The I-16 interstate highway will be expanded from a four-lane to a six-lane highway with new interchanges, and the US280 local highway intersection will be widened from two lanes to five lanes.
The improvement projects of the I-16 interstate highway, Old River Road, which connects to Georgia State Route 204 (GA 204), and the US 80 highway have recently entered the final stages. The expansion project of Jimmy Deloach Parkway, which connects the Georgia Ports Authority (GPA) and the I-16 interstate highway, has been completed.
These locations are expected to facilitate the use of the wastewater treatment facility that Hyundai Motor is currently constructing. Hyundai Motor is building a $130 million wastewater treatment facility in Bryan County to assist in the wastewater and sewage treatment of HMGMA and its partner company's factories. This facility, located above HMGMA and spanning the I-16 interstate highway, is expected to have the capacity to treat 5 million gallons (approximately 18.9 million liters) of water per day. (Reference: Hyundai Invests KRW 170 Billion for Wastewater Treatment at Meta Plant)
The industry expects that around 10 additional parts companies will join the venture. As HMGMA is expected to commence operations as early as next year, various parts suppliers are anticipated to enter the local supply chain. Hyundai Motor Group aims to start operations at HMGMA in the third quarter of 2024, about six months ahead of the initial plan (production in the first quarter of 2025), in order to respond to the demand. The plan is to expand production capacity up to 500,000 units as needed.
The Investment Tax Credit (ITC) was enacted in August last year. It provides a subsidy in the form of a tax deduction of up to $7,500 (approximately KRW 10 million) per electric vehicle assembled in North America. Additional rules for electric vehicle subsidies have been added, specifying that $3,750 will be paid for using over 50% of battery components made or assembled in North America and 40% of key minerals mined or processed in the United States or countries that have a free trade agreement (FTA) with the United States.
https://www.theguru.co.kr/news/article.html?no=56145
