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Wire & Cable ASIA – January/February 2012
35
From the
americas
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.
❖
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.”
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.