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SaeHaeSung expansion announced

The Andalusia City Council Tuesday approved a memorandum of understanding with SaeHaeSung Alabama that will facilitate the company’s expansion and result in the creation of 150 new jobs in Andalusia.

Under the terms of the agreement, the city’s Industrial Development Board will finance the construction of a 72,000 square foot building with a 6,000 square foot administration building attached to it. It will be built in the city’s industrial park, very near its current facility. SaeHaeSung will occupy the building through a lease-purchase agreement, Mayor Earl Johnson told council members, and has agreed to a 10-year lease.

Johnson said the company’s owner, Mr. In-Tae Heo, will put an additional $10 million in equipment in the Andalusia facility. The operation will be expanded from a welding and shipping operation to include a stamping operation. The company, which is a Hyundai supplier, will add a minimum of 150 jobs over the next two years.

Johnson said in anticipation that council members would approve of the agreement, the city has already begun clearing the lot on which the new facility will be built. There’s a reason: They’re up against a June 1 deadline to have the manufacturing facility completed.

Councilman Terry Powell said, “This is a company with whom we have an ongoing relationship. They have done everything they have committed to do and more at this point.”

As part of the agreement, the City of Andalusia will accept ownership of SaeHaeSung’s current building, which the city will use as a spec building after the company moves. The 30,000 square foot building originally was built as a spec building.

Johnson said the new facility won’t look like the “typical” industrial building in Alabama, but will be similar in appearance to SaeHaeSung’s facility in Korea.

In other business, the council:

Approved its 2008-09 audit, as presented by Carr Riggs and Ingram.

Agreed to purchase three vehicles for the police department.

Appointed Kim Hopkins to the Downtown Redevelopment Authority.

Announced an opening on the Housing Authority.