Korean auto supplier looking at Cleveland?
by RICK NORTON, Associate Editor
1 month ago | 1375 views | 5 5 recommendations | email to a friend | print
An unnamed Korean manufacturer with ties to the automotive industry is apparently looking at the Cleveland and Bradley County area for a new plant location, according to regional advertising that is seeking project manager applicants.

The ad appeared in Wednesday’s edition of the Cleveland Daily Banner and has also been published in a Chattanooga newspaper.

The classified publication, listed under “Help Wanted,” describes the employer as a “new company located in Cleveland” that is seeking applicants who are fluent in Korean and/or have automotive manufacturing experience. It states the individual will assist the management team with “a new plant startup.”

The unidentified company lists only a Cleveland post office box number for applicant replies.

Doug Berry, vice president of economic development for the Cleveland/Bradley Chamber of Commerce, said today he has not worked directly with Korean prospects, but that earlier confirmations of the Volkswagen and Wacker Chemie plants in southeast Tennessee have increased employer interest in the Cleveland area.

“There has been an explosion of corporate site consultants,” Berry said. The longtime Chamber professional said he has been a part of industrial recruitment for 25 years and that protocols among industrial prospects are changing.

Previously, out-of-area companies would work with engineering firms or similarly qualified consultants to help land manufacturing sites, Berry said. Now, companies use a completely different set of third parties like tax professionals, attorneys and real estate professionals.

Once prospects believe a suitable site has been found using these third parties, they approach local government, economic development and Chamber of Commerce representatives, Berry explained.

Of potential Korean manufacturer prospects, Berry said, “We have not spoken directly to anyone ... but we may have sent them some information.” He pointed out the Chamber regularly responds to corporate requests for information.

“There’s been a slight increase in prospect activity (since the Volkswagen and Wacker announcements), but it’s difficult to gauge due to the economic downturn,” Berry said. “I think there is more activity now.” But, much of the activity can be attributed to companies looking to the future and an eventual economic recovery, he added.

Berry said an automotive supplier or any company of significant size related to the automotive industry will eventually enter talks with local government, the Chamber of Commerce and economic development officials if they believe they have found a suitable manufacturing site in the area. Once getting to this stage, prospects want to discuss potential tax and economic incentives, he added.

The Chamber representative confirmed in a previous interview that at least two local building owners have had “pass-through reviews of properties.”

According to previously published reports, Korean manufacturers are partnering with auto manufacturers other than established national brands like Kia and Hyundai.

One example is SL America, a South Korean supplier operating a Clinton plant, which confirmed earlier in the year that it is expanding its work force by 300 and investing $35 million in its current facilities to expand assembly production as a Volkswagen supplier.

The South Korean manufacturer also supplies Hyundai Motor Co. and General Motors Co.