The $1 billion facility, set to begin production in 2005, will produce the next generation of the popular Sonata sedan and Santa Fe sport utility vehicle.

At peak production, the facility will employ approximately 2,000 people and produce 300,000 vehicles per year. The site will include a manufacturing and assembly facility, as well as a stamping plant and an engine plant.

“Today marks the beginning of a new era of growth for Hyundai Motor Company in the United States and underscores our commitment to investing in the American market,” said Mong Koo Chung, Chairman of Hyundai Automotive Group. “It also reflects our commitment to being a stable, growing member of the Montgomery-area community. We are very happy to now call Alabama home.”

Chairman Chung also announced the formation of a new subsidiary, Hyundai Motor Manufacturing Alabama, LLC, which will be responsible for plant operations in the Montgomery area.

Chairman Mong Koo Chung was joined at the ceremonial groundbreaking by Alabama Governor Don Siegelman, Montgomery Mayor Bobby Bright and hundreds of community leaders and federal, state and local government officials.

The ceremony also featured the unveiling of the artist’s rendering of the new, two million square-foot facility.

“On behalf of Hyundai Motor Company, I wish to once again thank Governor Siegelman and the state and local officials who have worked with us as partners to make this day possible,” added Chairman Chung.

Governor Siegelman offered the state’s appreciation for Hyundai selecting Alabama for its first U.S. manufacturing facility.

“Hyundai wants to build the greatest automobile, and we want to build the greatest state. And together, we will achieve both,” said Governor Siegelman.

The decision to build the facility in Alabama comes on the heels of continued strong sales growth in the U.S. market. In 2001 alone, the Hyundai Automotive Group (which consists of the Hyundai Motor America and Kia Motors in the United States) saw sales of 569,956 units in the United States, an increase of 29 percent over 2000 and the largest increase in the auto industry.