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Shinhwa Auto USA
Shinhwa Auto USA diecasting and machining operation in Auburn, Ala.

New CapEx Project for Automotive Diecaster

Sept. 18, 2023
Shinhwa Auto USA is planning a $114-million expansion in Alabama, its second since 2020, to add aluminum diecasting and finishing capabilities for EV components.

Shinhwa Auto USA Corp. in August announced a new capital-investment program at its Auburn, AL, operation, totaling $114 million. The aluminum diecasting operation started up in 2020 and launched its first expansion project in 2022.

The current plan is to add a new, 170,000-sq.ft. building to add diecasting and machining capacity for electric vehicle component production.

“We are thrilled to be expanding our business yet again, building new state-of-the-art facilities in Auburn, Alabama, where Shinhwa has a successful business operation since 2019,” stated Shinhwa Group Ltd. chairman Kwi Hyun Lee.

The current operation is reported to have 90 employees, and Shinhwa committed to establishing 50 more jobs over the next three years, according to the Alabama Department of Commerce.

Shinhwa Group Ltd. is a South Korean automotive supplier that invested $42 million in the initial construction, which established high-pressure and low-pressure diecasting, as well as squeeze casting, to produce brake components, drivetrain and steering system parts, and gear-shift parts for automotive manufacturers.

A $78-million expansion to the plant was announced in 2022, to add a 400,000-sq.ft building adjacent for additional diecasting and machining operations.

Hyundai vehicles assembled in Montgomery, AL, and Kia vehicles assembled in West Point, GA, are Shinhwa’s major customers.