Montgomery Begins Construction of $52 Million Hyundai MOBIS Automotive Parts Facility

Montgomery Breaks Ground on New Hyundai MOBIS Facility

Montgomery, AL – Earlier this month, local firm Graham & Co. took a significant step forward in the automotive sector with the groundbreaking of a new automotive parts industrial facility, set to cost $52 million. This upcoming 460,000-square-foot facility is being developed specifically for Hyundai MOBIS, a leading supplier of automotive parts.

Details of the Project

The facility, which will serve as a Class A distribution center, aims to enhance the supply chain logistics for aftermarket parts, targeting dealers, garages, and retailers associated with Hyundai and Kia across the nation. It will extend Hyundai MOBIS’ existing campus on Mitchell Young Road, strategically positioned just north of their current buildings.

Covering approximately 60 acres, the new structure will adopt a modern cross-dock layout, optimizing the shipping and receiving processes essential for efficient distribution. In the execution of this project, Graham & Co. is collaborating with several other Birmingham-based companies: Cooper Construction serves as the builder, while Five South Architecture has taken on the design aspect. Civil engineering responsibilities are in the hands of CCI Planning & Engineering.

Financial Backing

Graham Capital has fronted the equity for this ambitious project, and financing for the construction has been provided by SouthState Bank. Notably, the collaborative effort includes six companies—Graham & Co. and its partners—all of whom are locally based in the Birmingham metro area.

Community Impact

Senior Vice President of Graham & Co., Sonny Culp, expressed the importance of community and existing relationships that cultivate business opportunities: “It’s just the nature of business. When you put the band back together, you don’t call a new drummer; you call the guy who was always the drummer,” Culp stated. He emphasized that this project not only marks a significant investment but also further cements Alabama’s reputation as a developing automotive center.

Hyundai MOBIS Expansion

This new venture aligns with Hyundai MOBIS’ broader strategy in the region. Earlier, Hyundai MOBIS also invested an impressive $205 million into establishing a 450,000-square-foot EV battery module plant within their Montgomery campus. Additionally, in 2023, they leased 111,983 square feet at the Jefferson Metropolitan Industrial Park in McCalla, enhancing their operational footprint further.

Deborah M. Smith from Cushman & Wakefield/EGS Commercial Real Estate was recently awarded the Best Industrial Deal at the Birmingham Business Journal’s 2024 Real Estate Awards for her role in representing Hyundai MOBIS in the aforementioned lease.

Looking Ahead

This new facility is expected to create numerous job opportunities and contribute to the local economy, reinforcing Montgomery’s position as a vital player in the automotive industry. As the project unfolds, the benefits to the region and the automotive supply chain will likely be substantial.

With strong local partnerships and considerable investments underway, the future of Montgomery’s automotive sector looks bright, promising a robust framework for industry growth and community development.