Hyundai Motor Co. today announced plans to divest its majority stake from an auto supplier in Alabama following its investigation into the use of children as young as 12 in the workforce.

In a letter to shareholders, Hyundai Chief Executive Jaehoon Chang announced that Hyundai is divesting its ownership interest in SMART Alabama in Luverne. This will ensure that “economically important jobs in the Luverne, Alabama community are preserved and that all child labor laws are followed in the future,” the letter stated.

Reuters originally reported last July that children were employed at SMART Alabama, which has supplied parts for Hyundai’s Montgomery plant since 2003.

In addition, two suppliers, SL Alabama and SMART, have terminated their relationships with third-party staffing agencies which, the company said, falsely certified that they had screened and cleared children as being eligible to work.

Both SL Alabama and JK USA, an Opelika temporary employment agency, earlier this year paid fines from federal court and the Alabama Department of Labor, after investigators found workers as young as 13 employed in one factory.

The fines came after an investigation found that JK USA provided the underage workers to SL Alabama without required documentation.

A company-wide investigation of its Tier 1 suppliers found no child labor laws being violated, Chang said.

Hyundai said SL Alabama has agreed to the appointment of a special Hyundai-appointed audit committee “to ensure its continued compliance with labor laws and best practices going forward.”

“We do not condone or tolerate such behavior and are committed to taking further actions as needed,” Chang stated in the letter.

“Even though there were issues with third-party staffing agencies that provided false documentation to these suppliers, ultimately, the responsibility is with Hyundai to make sure all our suppliers understand and meet our high global workforce standards… Hyundai is a responsible corporate citizen in Alabama and everywhere we conduct business.”

Next month, Hyundai plans to roll out a compliance training program in collaboration with the U.S. Department of Labor for suppliers on several topics, including child labor laws, applicant identification documents and discouraging the use of third-party staffing agencies.

It will also set up an anonymous tip line.

Earlier this month, Reuters reported Hyundai has been holding talks with the U.S. Department of Labor over the use of child labor in its supply plants, while at the same time the automaker is requiring third party audits of its 29 in-state supply plants.