The U.S. state of Georgia will provide Kia Motors with tax benefits for the coming 16 years, in reflection of the carmaker’s major contribution to the regional economy, company officials said on Thursday.
Kia Motors, which operates manufacturing plants in West Point, Georgia, recently signed a pact on mutual investment with five municipal governments in the state.
The pact features reduction and exemption of a variety of taxes between 2013 and 2029 and fiscal support from the local governments for Kia and Kia’s subcontractors to foster new employees.
For example, Kia Motors will receive an education tax cut of 50 percent in exchange for its further investment totaling $1.6 billion in factories over the next 16 years.
To reciprocate for the public incentive, the automaker has decided to purchase local government bonds worth $1 billion and $600 million, issued by Troup County and West Point, respectively.
On Thursday, Georgia Gov. Nathan Deal announced that Kia Motors is investing in production efficiencies in West Point.
In response to continued growth and success in product sales, Kia will make major investments in additional machinery, equipment and production upgrades for the future.
The governor said in a statement that Kia has an exceptional track record of growth in the state.
“The wave of economic impact created by Kia’s presence in Georgia goes far beyond the 10,000-plus jobs the company and its suppliers have created and will underpin the region’s economy for generations to come,” he said.
Deal also said that “Kia’s continued commitment to our state moves us closer to making Georgia the No. 1 state in the nation in which to do business.”
West Point Mayor Drew Ferguson said, “The city of West Point welcomes Kia’s announced investment, which will help Kia grow and continue its success and whose positive effects will be realized for many years.”
He said Kia’s commitment to the citizens of its community is unprecedented and demonstrates an unwavering desire to see the community thrive.
The carmaker is investing in machinery and processes to enhance the efficiencies of its production lines and equipment to satisfy demand for Kia’s high-quality vehicles. Kia will continue to utilize the services of Georgia Quick Start, the nation’s top-ranked workforce development program, which operates the Kia Georgia Training Center.
Troup County commission or Ricky Wolfe said he believes “Kia has been a godsend to the community, the region and the state of Georgia.
“I am honored to work with the company as they continue to invest and grow in our area,” he said.
In August, Chung Mong-koo, chairman of Hyundai Motor Group, the parent of Kia Motors, met with Georgia Gov. Nathan Deal and Senator Saxby Chambliss in the U.S. to discuss future business partnerships.
By Kim Yon-se (
kys@heraldcorp.com)
