이 기사는 2021년 11월 25일 08:05 thebell 에 표출된 기사입니다.

Hyundai Wia, the factory machinery and auto parts making unit of South Korea's Hyundai Motor Group, newly established auto parts manufacturing entity in the U.S. in line with Hyundai Motor Group's strategy to manufacture electric vehicles (EVs) there.

Hyundai Wia established Hyundai-Wia Alabama, Inc in September, according to industry sources, and then incorporated the new entity as its new subsidiary through equity investment in the following month, although it is not known how much Hyundai Wia invested in the establishment of its Alabama entity.

“It is true that we established the new entity in Alabama, U.S., in September, but it is difficult to disclose the actual amount we invested,” said an official at Hyundai Wia. “It was a small investment for the creation of the new entity and an additional investment is expected to be made to build a production plant or for research and development (R&D).”

It is worth paying attention to the fact that Hyundai Wia has picked Alabama as the base for its U.S. subsidiary. Alabama is where Hyundai Motor's assembly and manufacturing plant in the U.S. is located. The carmaker produces internal combustion engine vehicles, including models like the Avante, Sonata, and Santa Fe, in its manufacturing plant in Alabama, which is only 134 kilometers away from Kia Corp’s manufacturing plant in Georgia.

Hyundai Wia has supplied components manufactured at its plants in Korea and Mexico to Hyundai Motor’s plant in Alabama and Kia's plant in Georgia. The creation of the new entity will help Hyundai Motor Group to cut logistics costs by reducing the distance that auto parts are transported.

Another reason behind Hyundai Wia’s selection of Alabama is in line with Hyundai Motor Group’s plan to manufacture its EVs in the U.S. The automotive group in May announced its plan to invest $7.4 billion in expanding the EV production and recharging infrastructure in the country.

Hyundai Motor’s North American chief Jose Munoz said the company is considering a plan to transfer the production of internal combustion engine vehicles from its Alabama plant to its plant in Korea and utilize the vacant space for EV production.

“As Hyundai Motor announced its strategy to produce EVs in the U.S., the demand for parts is expected to grow in the future,” said Hyundai Wia. “We established our U.S. subsidiary to keep pace (with surging demand).”

Hyundai Wia is expected to complete preparations for parts production through investment until Hyundai Motor starts manufacturing in the U.S.

Hyundai Wia will supply drive axles to Hyundai Motor and Kia's manufacturing plants in the U.S. A drive axle, which refers to the axle or drive shafts of the vehicle's driving wheels, is a key component to a vehicle's drivetrain. Hyundai Wia's Alabama subsidiary aims to localize the production of its new drive axles.

Financial performance of Hyundai Wia’s Alabama subsidiary can be estimated based on the performance of its Mexican subsidiary. Hyundai Wia’s subsidiary in Mexico recorded revenue of 847.7 billion won ($714.5 million) in 2019 and 679.3 billion won in 2020, the largest among the company’s parts manufacturing subsidiaries. The Mexican subsidiary recorded revenue of 494 billion won during the first nine months of this year.

Hyundai Wia plans to invest 374.4 billion won in its U.S. subsidiary until next year, according to the company’s third quarter report. (Reporting by Seo-young Kim)