South Korean automotive supplier Samkee Corp. announced today it will open a $128 million factory in Tuskegee, its first in the U.S.

The project is expected to create 170 jobs, with an average wage of slightly more than $20 an hour, according to the Alabama Department of Commerce. Samkee will be a Tier I supplier for Montgomery’s Hyundai plant.

Construction will take place in the Tuskegee Commerce Park, with parts production expected to begin in 2024. Samkee specializes in high-pressure die-cast aluminum components, including parts for engines, transmissions and electric vehicles, along with alloys.

The company currently has factories in South Korea and China.

“Alabama’s auto industry is filled with world-class manufacturing companies from around the world, and Samkee will fit right in with that group,” Gov. Kay Ivey said in a statement. “We’re proud that the company selected Alabama for its first U.S. production center and look forward to seeing it grow and thrive in the coming years.”

An analysis by the Center for Business and Economic Research (CBER) at the University of Alabama projects the factory will generate $140.2 million in annual economic output in Macon County, contributing more than $37 million to the county’s GDP while also generating $1.3 million per year in taxes.

Samkee CEO Chi Hwan Kim said the plant “will allow our company to serve the North American market along with Hyundai’s market growth for both combustion engines and transmissions, as well as electric vehicle and battery parts.”

Joe Turnham, director of the Macon County Economic Development Authority, said local support for the project includes site work in the commerce park, upgrades to the water and sewer system and the installation of a new power substation. The recruitment project lasted more than a year.

“Samkee appreciated the local assets, spirit of cooperation and friendship developed over time with Macon County. We have strived with our stakeholders in a team effort to meet Samkee’s needs,” Turnham said.

According to the Alabama Department of Commerce, foreign companies have invested more than $2 billion in growth projects in Alabama’s rural counties, with auto-related projects making up most of the money.

Tuskegee Mayor Tony Haygood called the announcement “another major step in Tuskegee’s progression as a city.”