Hyundai Motor narrows U.S. plant choice


Hyundai Motor is South Korea's largest and most profitable carmaker

NEW YORK -- South Korea's biggest carmaker Hyundai Motor has narrowed the choice to Alabama or Kentucky for its first assembly plant in the U.S., the company said.

After the U.S. announcement, shares in Hyundai Motor traded sharply higher in Seoul Tuesday. They were up 3.4 percent to 34,800 won in morning trade.

Hyundai said it would announce its final decision in the northern spring.

The choice -- between Montgomery, Alabama or Glendale, Kentucky -- would be based on "literally hundreds of tangible and intangible factors," a Hyundai spokesman said.

The company had also looked at putting the plant in Ohio or Mississippi.

Hyundai Motor is by far South Korea's most profitable carmaker. On February 7 it reported a 75 percent increase in 2001 net profit to 667.8 billion won ($502 million).

'Mature industries'

Also earlier this month, Hyundai Motor said it would invest $250 million to build a joint venture factory for passenger cars in China.

In the U.S. Monday, Hyundai said both Alabama and Kentucky had mature but growing car industries, and said they "have experience with successfully assimilating multiple auto assembly plants as well as plants owned by non-U.S. companies."

Japanese makers, including Nissan and Toyota, already have manufacturing facilities in the United States.

Toyota produces the Camry, Sequoia, Corolla, and other vehicles in North America, while Nissan is opening a new plant in Canton, Mississippi this year.