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Published Sunday, September 05, 2010 in Local

Kia move may impact local economy

By Jeff Bishop

The Newnan Times-Herald

Kia Motors Manufacturing Georgia is moving production of the 2011 Hyundai Sante Fe from its factory in Alabama to its West Point plant this fall, the company said this week.

Even though new jobs won't be added right away, the expanded line should still have an overall positive effect on the regional economy, said Greg Wright, president of the Coweta County Development Authority.

"Given the size of the Kia project, it is having a positive impact on the regional economy," said Wright.

"The announcement of the new production vehicle did not come as a surprise," Wright said.

"When our development authority and community leaders toured the facility earlier this year, it was clear that Kia had plans to add another production line in West Point," he said.

"Over the past few months, we have talked to a couple of Tier 2 suppliers and are hopeful that the increase in production at the facility will mean new opportunities for Coweta County as a location for automotive suppliers," he said.

The West Point facility has about 1,900 workers currently, up from about 1,200 when it opened last year, the Atlanta Journal-Constitution reported. That will be enough to handle the second shift that is being added on Oct. 1 to accommodate Santa Fe production.

Governor Sonny Perdue said the addition of the Santa Fe is good news for Georgia.

"The seeds that were first planted on our initial trip to Korea in 2003 continue to bear new fruit today," said Perdue.

"Production of the company's best-selling vehicle, the Kia Sorento, created thousands of jobs in West Georgia, and now the addition of the Hyundai Santa Fe will create additional jobs and investment," he said.

"We knew this would be a strong partnership, and all the credit should go to the employees in West Point who made the plant a success.

"Georgia's skilled workforce, business-friendly environment and strategic location are paying dividends for advanced, high-tech manufacturers such as KMMG," said Perdue.

The AJC reported that West Point, which makes the Sorento, has enough production capacity (300,000 vehicles annually) to eventually employ up to 2,500 workers. That would allow for the prospect of additional vehicles being built there some day, and for more employment.

Automotive industry consultants have speculated that Hyundai eventually would shift manufacturing of the Santa Fe to West Point because it is more efficient to produce sedans and SUVs separately.

In August, Kia Motors America announced record July sales of 35,419 units, a 20.7 percent increase from July 2009, with year-to-date sales up 16.3 percent. The 2011 Sorento was the brand's best-selling vehicle for the seventh consecutive month.

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