A discussion that began in Andalusia in late February ended Monday in Daegu , Korea when In Tae Heo, president of SaeHaeSung, signed a memorandum of understanding with the City of Andalusia to expand his local plant.

The agreement represents a $2 million investment by SaeHaeSung.

Mayor Earl Johnson and other city officials were already slated to be in Korea to call on several prospects, including a company that is actively looking for a location in South Alabama. City Clerk John Thompson said the visit to President Heo’s company was added to the agenda so that the memorandum of agreement could be signed.

But Johnson also said that the presence of city officials in Korea “is a gesture of commitment between the parties.”

“The Koreans deeply appreciate our making the effort to come to see them,” Johnson said. “Plus this project could have gone somewhere else. SaeHaeSung has another plant in east Alabama and they could easily move production there if they became unhappy with us. This is highly competitive business.”

The memorandum of understanding calls for a 3,500 square foot expansion of SaeHaeSung’s existing 120,000 square foot facility, adding up to six more stamping machines and 10 to 15 more jobs. At present, SaeHaeSung has between 175 and 200 employees in Andalusia. The addition will be completed this summer, Thompson said.

SaeHaeSung produces automotive parts for Hyundai and Kia.

Johnson thanked President Heo and Industrial Board Chairman Ed Short for working together to create a partnership to benefit Andalusia and SaeHaeSung.

“We have developed a great relationship with President Heo and SaeHaeSung for many years and we deeply appreciate his investment in Andalusia. This project represents our continued effort to diversify and grow Andalusia’s economy.”