4/2/02

AUBURN BUSINESS FACULTY SAY HYUNDAI DECISION HUGE FOR STATE

AUBURN -- Two Auburn University College of Business faculty say Hyundai Motor Co.'s decision to build a plant in Alabama is a lightning strike for the state's economy.

Hyundai Motor Co. announced Monday night it will build a $1 billion plant south of Montgomery, selecting the site near Hope Hull over a site in Kentucky.

Montgomery and state officials worked together on an incentive package to convince the automaker to build the plant in Alabama. The Korean automaker is expected to hire 2,000 people and attract dozens of suppliers and other industry to the site of its first U.S. plant.

Dan Page, professor of finance and head of AU's Department of Finance, said the company's decision to build in Alabama will spark an immediate impact of jobs at Hyundai's assembly plant, while generating other related service industries.

"The number of jobs and the influx of new cash that will come into Alabama will be substantial," said Page. "Wešve seen that from the Mercedes Benz plant."

Jim Long, professor and acting head of AU's Department of Economics, said the Hyundai plant will put Alabama on the map as far as attracting large industries to the state.

"It will show other big industry that Alabama is willing to work with them to bring their industry into the state," he said.

Long also said the plant will have a major effect on manufacturing and textile jobs that Alabama has lost in the past two years.

"It would stem that tide (of losing jobs in textiles) and cement the state as one in which the automobile industry is interested," he added.

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apr02: AU-hyundai

CONTACT: Page, 334/8445344; and Long, 334/844-2911.