Western-Star.com

Kia plant on way to Georgia?

ATLANTA — Georgia could be in the running for a $1.2 billion auto plant that may be one of the largest investments in the South by a carmaker in more than a decade.

Kia Motors Corp., the Korean automaker, is looking at a site in West Point, Ga., in Troup County near the Alabama border for a manufacturing plant that could create 2,500 jobs, according to an economic development trade publication.

Kia wanted to build its plant in Mississippi, but has turned to Georgia in recent weeks as that site and others in rival Southern states lost their luster, said Mike Randle, publisher of Birmingham-based Southern Business and Development magazine.

Kia "has run out of options" and is under a self-imposed deadline to start construction on a new plant by June, Randle said. "This is Georgia's to win or lose."

Officials at the state Department of Economic Development and the LaGrange-Troup County Chamber of Commerce wouldn't comment on any negotiations with Kia. A Kia spokesman in Korea could not be reached.

Kia's plant, if built, would cost more than $1.2 billion, making it one of the largest investments in the South by an automaker since General Motors Corp. built its Saturn facility in Spring Hill, Tenn., in 1990, Randle said.

Mississippi Gov. Haley Barbour said in August that Kia was considering Meridian, Miss., for a new U.S. plant. Since then, Kia has reportedly expressed reservations about that site.

Automotive News, an industry trade magazine, reported last month that Kia also was looking at Chattanooga, Tenn.; Decatur, Ala.; Aiken, S.C.; and Hopkinsville, Ky.

But Randle believes those states may be less willing to offer Kia the incentives it is seeking.

Kia is part of Korean automaker Hyundai.

West Point is now in play because it's close to Hyundai's plant in Montgomery, Ala., as well as that plant's 35 suppliers, which would supply a Kia facility, Randle said.

Georgia may be more willing to offer Kia a fat incentive package, as Georgia has failed to attract a new automaker while it stands to lose both its existing plants, Randle said.

General Motors said in November it would close its Doraville facility by 2008. Ford Motor Co. could shutter its Hapeville plant when the company announces a major restructuring Jan. 23.

Georgia has failed twice — in 2002 and again last year — to persuade DaimlerChrysler to build a van plant in coastal Pooler.

Last fall, Daimler announced it would put that operation near Charleston, S.C.

Walter Woods writes for The Atlanta Journal-Constitution. E-mail: wwoods AT ajc.com