WCA January 2012

From the americas

❖ Mr Carroll, noting that South Korea runs a huge automotive trade surplus with the US, wrote: “Not bad, in an industrial segment where Michigan has been shrinking, to see a metal bender from Korea pump investment dollars and new jobs into the state.”

went counter to the preference of other Korean suppliers for locations in southern states, close to the assembly plants of the auto makers Hyundai and Kia. Mr Kong had heard that some parts suppliers had met with difficulty in finding skilled workers and engineers for tooling and design in the South. (“Korean Metal Bender Makes Impression in Michigan,” 1 st October). Mr Kong had also heard that labour costs were high in Michigan, but the automotive industry shakeout of 2008-2009 brought the wage scale within his range. GNS pays a starting production worker at the Holland plant $13 to $15 per hour: about the same as GM pays new hires under its 2009 agreement with the United Auto Workers. The decision in favour of Michigan worked out well for both parties. GNS has five plants and some 500 employees in Korea. Today, 65 people work at GNS Holland, and it was reported by the Freep that the company is close to concluding the purchase of another building, in nearby Canton, for stamping and welding. This bigger facility would turn out parts for the Cadillac CTS, the new Chevrolet Sonic, and other vehicles. Mr Kong said that the Holland plant is tracking to produce annual revenue of $20 million, and could double that with a second shift. He believes that the Canton plant, which he hopes to open in 2012, could generate another $40 million to $50 million.

Steel vs aluminium

With the push on for lighter-weight cars, aluminium gains ground with the steel industry’s No 2 customer after service centres “Steel has to be the loser in terms of pounds. It doesn’t have to be the loser in terms of profit.” New York-based analyst Charles Bradford, who has covered competition between the American steel and aluminium industries for decades, was referring to the ongoing battle between the two sets of producers over one of their biggest mutual customers – the automotive industry. The US government’s imperative to double the fuel economy of the average car by 2025 has intensified that competition, in which aluminium has been steadily advancing on steel in market share.

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Wire & Cable ASIA – January/February 2012