A large Korean corporation will establish its first U.S. operation in Auburn, creating jobs and bringing industry innovation.
HONAM Petrochemical Corporation has selected Auburn as the location for a manufacturing facility for polypropylene resin materials.
An existing building in the North Technology Park will be the home of the new operation, formed under the name HPM Alabama.
"They were satisfied with the overall level of support," said Phillip Dunlap, economic development director. "There was an existing building here they felt fit their requirements. They also were interested in having a relationship with Auburn University, and they liked the idea of being in a university town."
The Lotte Group, HONAM's parent company, is one of the top 10 corporations in Asia, Dunlap said.
"This is a tremendous win for Auburn," he said.
The corporation makes and sells the material used by injection molding companies, Dunlap said.
"It's a very high-technology product because it's a composite," he said. "It's a material that is basically plastic, but has glass fibers in it."
Ted Wilson, president of the Auburn Industrial Development Board, developed a system that uses plastic and glass and produces highly durable, cost efficient materials that can be molded into a variety of products.
"I'm sure any industry would look at it--companies manufacturing any product line looking for some cheaper material that would serve the same purpose," Wilson said.
Mayor Bill Ham said HPM Alabama will initially manufacture plastic components for automobile parts.
"In the pursuit of making the lighter weight and more efficient and stronger automobiles, the plastic components that will go into automobiles--not only Korean automobiles, but others--is certainly a step in the right direction for fuel economy and better vehicles," Ham said.
The establishment of HPM Alabama will enable the region to be involved in a new manufacturing process.
"Automobile manufacturers are strong prevalently in Alabama now as well as other Southeastern states, and so this gives Auburn the ability to be a leader in automobile manufacturing," Ham said.
In the future, HPM Alabama will manufacture materials not limited to automobile use, he said.
The new operation will also work on research and development projects with the University and provide opportunities for students.
"We're thrilled that not only they will create some excellent jobs with excellent benefits for residents and employees in the Auburn-Opelika area and East Alabama, but we're also thrilled they will have a very strong relationship with the engineering school at Auburn University," Ham said.
Because HPM Alabama will be an automated facility, around 35-40 jobs will be available at first, Dunlap said.
Eventually, the operation will recruit 100 people or more as it continues to grow, develop and realize more markets for their material, he said.
Before deciding on Auburn as the location for its first U.S. operation, HONAM conducted an extensive search for possible sites in Alabama and Georgia.
"We've been recruiting companies for some time," Dunlap said. "It's a team effort here. I think the key people involved include our own development board, of course, the city's economic development department and the city as a whole backing and creating the support we need, which means the mayor and Council and, of course, our administration. Those are all important people in helping us make this project a reality."
An Auburn delegation visited HONAM's corporate headquarters in Korea.
"We've had a good working relationship since our first visit with them," Ham said. "Our economic development team has been to Korea to visit facilities. We're now familiar with technology they use.
"We believe it will be an excellent fit for our technology park."
Do you like this story? The Plainsman doesn't accept money from tuition or student fees, and we don't charge a subscription fee. But you can donate to support The Plainsman.
