DETROIT-Michigan really wants a proposed $1-billion Hyundai plant, and it'sthrowing its hat in the ring as the only place that should matter to the South Korean automaker. However, the Detroit area has not been in contention for the new plant, and states to the south have been fighting harder for the new jobs.
The plant would produce 150,000 to 300,000 vehicles each year wherever the company finds the best benefit package, says Paul Krepps, a spokesman for the Michigan Employment Development Corp.
The states competing so far are Kentucky, Alabama, Mississippi, Ohio and Michigan. However, the state that claims the Motor City should be the best location for the firm, Krepps insists.
“We definitely have the advantage being the automotive capital of the world, as well as having so many suppliers in our state,” Krepps tells GlobeSt.com. “We realize that with any opportunity of this magnitude that there will competition.”
The company announced plans to enter the North American automotive market with a new plant last year.
Krepps says an MEDC team traveled to Hyundai headquarters in South Korea to convince the company to make its move to Michigan. He can't comment on the exact negotiations, but agrees the public-private corporation is actively seeking the new plant.
Ohio has also been aggressive in the pursuit of the plant. Ohio Gov. Bob Taft and staff members have reportedly visited South Korea to entice the company into his state.
“We can't afford not to be competitive,” Taft says. “We're talking about new jobs and new opportunities for Ohio. It's critical to be very aggressive when seeking out new investments. The payback to the state, the return, will be very great.”
Two locations in Ohio are being touted for the new plant, which would employ 2,000, Taft says. He adds Hyundai executives don't want the receiving state identified until it is formally announced. The plant location should be decided soon, likely by March.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
