Luring Hyundai suppliers won't be easy, official warns Georgia

MONTGOMERY, ALABAMA - Luring Hyundai plant suppliers from Alabama to Georgia won&#39;t be as easy as it was to recruit suppliers to the Honda plant, a former Georgia official said. <br> <br> Hyundai announced last month it would build a $1 billion plant south of Montgomery. It is expected to employ about 2,000 people and produce 300,000 vehicles a year by 2005. <br> <br> Randy Cardoza, formerly commissioner of the Georgia Department of Industry, Trade & Tourism, now is economic development director for the Montgomery Area Chamber of Commerce. <br> <br> ``They&#39;ll have some success with the tier-two and tier-three Hyundai suppliers,&#39;&#39; Cardoza said of Georgia. ``Places like LaGrange, Columbus, Newnan, Peachtree City and West Point would be our main competition.&#39;&#39; <br> <br> Georgia said this week it was launching an offensive to win Hyundai suppliers. A delegation of Georgia economic development officials departed Tuesday for talks with parts makers in Seoul. <br> <br> Gov. Don Siegelman has said he aims to keep all of Hyundai&#39;s 20-plus tier-one suppliers in Alabama. Tier-one suppliers provide parts directly to the auto plant whereas tier-two suppliers ship to tier-one and tier-three to tier-two. <br> <br> Cardoza said Georgia was able to win big Honda suppliers because it offered many good sites right along Interstate 20 within 90 miles of the Honda plant. Also, Honda officials approached Georgia economic developers to ask for help in locating some of the auto plant&#39;s suppliers. <br> <br> ``Hyundai won&#39;t make it that easy,&#39;&#39; he said. <br> <br> Georgia says it has snared 2,100 Honda supplier jobs and $188 million investment, but the number of jobs for some suppliers appear to be based on projections. For example, Georgia counts the jobs at Findlex Corp. at 500. Trade journal Plant Sites and Parks has reported Findlex, which makes brake systems at a factory in Rock Spring, may reach that figure by 2008. <br> <br> Still, Georgia has reaped some benefits. Honda Lock America, which makes locks and starter switches, opened a plant in Bremen with an investment of about $14 million and has already expanded it. Neaton Auto Products invested $13 million to open its plant in Rome. <br> <br> But Alabama&#39;s bounty has been greater. Honda officials said Monday the Lincoln plant has 2,180 employees and should have at least 2,300 by the end of the year. <br> <br> More than 15 Honda suppliers have located in Alabama with 1,100 jobs and investments topping $133 million, according to the Economic Development Partnership of Alabama.