Category Archives: World Trade

economic prosperity and energy, Electric Vehicles, Energy, Politics and Economic Prosperity, Keeping America Great, World Trade

Am I Missing Something on EV’s? Here is an Update on Hyundai’s Meta Plant Commitment to EV’s and Hydrogen Vehicles

Leave a comment

Last week I wrote an article on the Reality of Electrifying Everything. I stand behind my concerns and conclusions on that and the other articles I have written on energy and electricity generation. However, this week I attended the two part and outstanding USCB-OLLI course: “THE KOREAN WAVE 2024 – CHANGING DEMOGRAPHICS OF THE LOWCOUNTRY” . Professor Juanita (Babet) Villena-Alvarez was the instructor and she presented an incredible story of the growth of Hyundai from founding in 1967, to becoming the huge conglomerate it is now. The course was well researched and presented in a compelling and interesting way on the massive investments by Hyundai in south east Georgia only about an hour drive from Hilton Head. The course purpose was to inform and educate local citizens of the coming cultural changes and the infrastructure challenges that come along with the rapid growth. This was not a technical discussion on EV’s, it was a course on culture, business and demographics. However, in my mind, I was thinking about the challenges to electricity generation to make it all possible.

Hyundai Motor Group Drone View of new Metaplant, Bryan County Georgia  https://www.bryancountynews.com/news/hyundai-metaplant-start-production-line-late-2024/

Getting back to my normal topic of writing on energy and electricity generation. I should point out another large project, now completed and within 100 miles of the HMG Metaplant, is Georgia Power’s Plant Vogtle, now the largest nuclear generating plant in the U.S.

Professor Villena-Alvarez was kind enough to share dozens of references. Many are included at the end of this. The point of this article is to show the enormous commitment Hyundai has made toward “Electrifying Transportation”. Sitting in class it occurred to me, “What Am I Missing?”…..Here is an update on Hyundai’s project which is in the low country, within an hour drive from my home. Needless to say, I was impressed, this is a huge commitment.

Hyundai Invests in The Largest Project in GA State History According to Governor Kemp

Governor Brian Kemp stated,(6) “In a single year, we broke ground on the largest project in state history, landed multiple suppliers across the state for Hyundai’s Metaplant, and welcomed LGES to Bryan County. Today, we’re building on that success as we continue to make Georgia the e-mobility capital of the nation,” said Governor Brian Kemp. “These types of major investments ultimately go to hardworking Georgians in the form of paychecks, improved schools and infrastructure, and more. Thank you to Hyundai Motor Group and LGES for again recognizing that the No. 1 state for business is a good investment.” As I studied the materials that Professor Villena-Alvarez prepared, I was impressed. Here are some points and references that may interest you too.

Some Points of the Economic Impact

Hyundai is a huge company. Hyundai Motor Group (HMG) is just one division. Until I took the short course, I had no idea of just how large Hyundai and other South Korean firms are and their economic impact in the U.S.

I learned that not only Hyundai, but also other South Korean firms including, Sam Sung, LG, SK-Battery and others have invested over $200 Billion in plants in the U.S. Hyundai makes Hyundai, KIA and Genesis autos. Also, Steel, Shipping and more. Here is a bullet list of some key facts of economic impact from Korean direct investment into Georgia and the U.S.A.

  • Over 8,100 jobs will be created by HMG in Georgia, over 14,300 including supply-chain providers of components
  • The Panamax capable Port of Savannah will be enlarged with additional new Ship to Shore Cranes. Savannah is already one of the busiest ports in the U.S.
  • The Talmadge Bridge over the Savannah River will be raised to accommodate Panamax Ships.
  • Hyundai is now the #3 world auto manufacturer, after Toyota and VW, HMG plans to build 500,000 vehicles/year at the new GA MetaPlant. The professor said BMW produced 412,000 vehicles in 2022 as comparison
  • The Hyundai Meta Plant covers almost 3,000 acres off of I-16
  • Hyundai is partnering with Georgia Tech to collaborate on the use of Hydrogen for future Hydrogen Fuel Cell Vehicles
  • Hyundai had a large plant in China. In August 2023, Hyundai pulled out of China (24)

Time Will Tell….

Hyundai and others have made an enormous investment into “Electrifying Transportation”. My position and my concerns have been discussed in numerous blog posts. As the years roll on, we shall see how this all turns out. A couple tidbits of South Korean business culture and history: A majority of South Korean’s are Christians and share the values of western civilization. Hyundai, now a world manufacturing power was founded in 1967 by Chung Ju Yung.

Mr. Chung, interestingly to me, was born in North Korea. These folks are accustomed to making right decisions and growing manufacturing at a fast pace.

In the meantime, I thought you might be interested in checking the references below to reveal the South Korean infusion of optimism and enormous investment in America.

Dick Storm, April 13, 2024

References and Information on Korean Direct Investment into the U.S.A.:

  1. Latest PR on Hyundai Metaplant Start of Production: https://www.prnewswire.com/news-releases/hyundai-announces-new-production-start-date-at-metaplant-america-during-hyundai-day-in-georgia-302071754.html
  2. Bryan County Business News: https://www.bryancountynews.com/news/hyundai-metaplant-start-production-line-late-2024/
  3. Reuters article 2022 announcement of $5.5 Billion investment: https://www.reuters.com/business/autos-transportation/hyundai-launch-55-bln-us-ev-plant-new-law-dims-sales-outlook-2022-10-25/   
  4. Hyundai Motor Group, HMG, Wikipedia: https://en.wikipedia.org/wiki/Hyundai_Motor_Group
  5. AJC Politics, “First Look, Inside Hyundai’s $7.6 B Meta Plant: https://www.ajc.com/politics/first-look-what-hyundais-76b-ev-metaplant-will-look-like/GHD2DTB46NCS7JHGK5WTQO6GTY/
  6.  Georgia Governor Press Release, Feb, 2024: Update on Hyundai Meta Plant and associated Industries: https://www.ajc.com/politics/first-look-what-hyundais-76b-ev-metaplant-will-look-like/GHD2DTB46NCS7JHGK5WTQO6GTY/
  7. Korea Business News, Hyundai now #3 Automaker in the world: https://koreajoongangdaily.joins.com/news/2024-02-18/business/industry/Hyundai-Motor-Group-solidifies-position-as-No3-automaker-in-world/1983455
  8. Georgia Tech and Hyundai Collaboration on Hydrogen Vehicles: https://techtransfercentral.com/2023/09/26/georgia-tech-and-hyundai-to-collaborate-on-hydrogen-sustainable-mobility-and-workforce-development/
  9. LA Times article on Hyundai and Tesla competition, February 2023: https://www.latimes.com/business/story/2023-02-28/hyundai-kia-ev-ira-biden-ioniq
  10. Global Atlanta Business News: SK Battery and Hyundai Partnership to create 3500 jobs plus $5B more investment in GA. March 2023: https://www.globalatlanta.com/sk-hyundai-joint-battery-plant-in-bartow-to-hit-5b-filing-shows/
  11. Atlanta Business Journal update on Hyundai Plant, June 2023: https://www.bizjournals.com/atlanta/news/2023/06/02/hyundai-savannah-plant-genesis-cars-ev.html
  12. Port of Savannah Adds Four Heavy Lift, Ship to Shore Cranes, April 2023: https://www.ttnews.com/articles/port-savannah-four-cranes
  13. Port Receives First Shipment, Aug 2023: https://www.savannahnow.com/story/business/automotive/2023/08/14/hyundai-georgia-ports-authority-celebrate-for-shipment-for-meteplant/70588197007/
  14. Plan Moves Forward to Raise Talmadge Bridge to provide clearance for larger Panamax Ships, WTOC January 2023: https://www.wtoc.com/2023/01/23/plan-moving-forward-raise-clearance-replace-cables-talmadge-bridge/
  15. The Street article on Hyundai competition with Tesla, July 2023: https://www.thestreet.com/electric-vehicles/tesla-rival-hyundai-debuts-model-s-plaid-competitor
  16. Georgia Power’s Plant Vogtle, Largest Nuclear Generating Plant in the U.S. : https://www.georgiapower.com/company/energy-industry/generating-plants/plant-vogtle.html
  17. Hyundai pulling out of China https://www.bloomberg.com/news/articles/2023-08-23/china-s-bustling-car-market-is-a-rare-black-mark-on-hyundai-s-blockbuster-year#xj4y7vzkg
  18. Hospital for Hyundai Metaplant GA https://www.wtoc.com/2023/07/10/st-josephscandler-opening-medical-center-new-hyundai-metaplant/
  19. Partners with Local Colleges https://www.wsav.com/video/hyundai-partners-with-local-colleges-to-expand-student-opportunities/8975182/
  20. Hyundai Partnering with workforce training https://www.savannahtribune.com/articles/hyundai-motor-group-metaplant-america-savannah-technical-college-sign-memorandum-of-understanding-for-training-partnership/  
  21.  Total Related Investments Now at $ 12 Billion https://www.hyundai.news/eu/articles/press-releases/georgia-tech-and-hyundai-sign-mou-for-future-mobility-collaboration.html
  22.  Texas Investments by Korean companies: https://businessintexas.com/wp-content/uploads/2023/02/SouthKorea-Profile-2023Jan.pdf  
  23. Sam Sung to invest $200 Billion in U.S. : https://www.businesskorea.co.kr/news/articleView.html?idxno=97177
  24. Automotive News on Hyundai Pulling Out of China, January 2024: https://www.autonews.com/china/hyundai-unloads-china-assembly-plant-225-million#:~:text=Hyundai%20Motor%20Co.’s%20China,listed%20for%20sale%20in%20August.
  25. The Reality of Electrifying Everything, Dick Storm’s Opinion and research,  April 9, 2024: https://dickstormprobizblog.org/2024/04/09/the-reality-of-electrifying-everything-and-the-primary-energy-required-to-generate-the-electricity/
  26. Full History of Hyundai and Mr. Chung, You Tube: https://www.youtube.com/watch?v=YYk2HJtkQCA
  27. Business Chronicles, You Tube History since Hyundai autos, unreliable early days to becoming the #3 carmaker in the world: https://www.youtube.com/watch?v=5tTLaZ4j8Ws
  28. Korea Energy Profile by IEA. A reminder that a growing economy requires enormous use of energy. Here is where South Korea obtains their energy: https://www.iea.org/countries/korea
  29. Georgia Electricity Demand is Growing Faster Than expected, Twitter feed, April 2024: https://twitter.com/JunkScience/status/1765738887568097719/photo/1
  30. Electrifying Everything, requires more electricity generation, Quanta Technology Study Report on Power Generation Shortages, report for America’s Power, Feb. 2024: https://americaspower.org/wp-content/uploads/2024/02/Quanta-Final-Feb-2024-3.pdf
  31. Georgia Power IRP Revised 2023, April 2024 to show increased growth of electricity Demand:  https://www.georgiapower.com/content/dam/georgia-power/pdfs/company-pdfs/2023-irp-update-main-document.pdf
China, World Trade

Giant Sucking Sound

Leave a comment

Introduction

The title is from a comment by Ross Perot, Presidential candidate in the 1992 election cycle. Perot was describing what NAFTA would mean for jobs in the U.S.A. if Bill Clinton was elected President and he proceeded with the North American Free Trade Agreement. That was 1992. Ten years later China had been admitted to the World Trade Organization and began its rapid economic growth. Here are some observations I personally made from both my home town of Albemarle, NC where the County Logo showed the three main economic staples: Textiles, Aluminum and Agriculture. Now, aluminum production is gone and textiles a very small employer compared to the thousands employed in 1990. The story which follows are my observations of history as it impacted me, 1990-2020.

History Tends to Repeat-We Hope NOT

The phrase “History Tends to Repeat” comes to mind when we are looking at the IRA codified “Green New Deal” and forced acceptance of EV’s. President Trump used the poor word choice…. “Bloodbath” when describing what Democrat policies will do to harm the auto industry. Well, a lesson from history may help explain how correct Mr. Trump’s dark vision of the future under another Biden term could be. I agree with him. Here is a lesson from history that supports Mr. Trump’s comments.

Case Study-Stanly County, NC 1990-2000

As I watch the news on China and absorb just how dependent we are on imported Chinese products, I cannot help to reminisce and look back on my past experiences during the time that we started Storm Engineering (1992, later DBA Storm Technologies). It was a good time for the electric power service engineering business to grow, but not so great for the textiles & furniture industries, which were the mainstay for NC employment up until NAFTA.

Do you remember the Quote uttered by Ross Perot in 1992. “Giant Sucking Sound” when referring to NAFTA and his prophetic forecast of massive American job losses? I do. Let me explain the photo below. It is a picture of the partial demolition of Wiscassett Mills, Mill No. 4 in Albemarle, NC. If you look closely the sign on the remaining brick wall, near the previous employee entry gate States: “Our Employees Make the Difference.”  Yes, the Albemarle employees of Wiscassett Mills did make a difference, they had been reliable, loyal, hard-working and productive for nearly 100 years. Wiscassett Mills began operations about 1898. Many future military, industry and business leaders were sent to college and nationwide recognition from paychecks earned in these textile mills.

Back in 1990, we would never drive by the parking lot at 3:30 in the afternoon because of the massive traffic as 1,000’s of Wiscassett employees left work after their shift ended.

In 1994 the North American Free Trade Agreement was signed and the “Giant Sucking Sound” applied to thousands of jobs in Albemarle, Stanly County, NC. 

Then in 2001 China was allowed to join the WTO (World Trade Organization) and that further increased the drain of American jobs. 

Why would I have these old pictures? Well, it was a sad time for NC Textiles in 1996. But for me personally and Storm Technologies it was a time of business growth. Needing a larger office as our company grew, our friend from Sunday School, Mr. El Wilson suggested we take a look at this property. Jerry Barrier, our accountant and ourselves stretched all available credit to purchase the Main Building of Wiscassett Mills. A stately, well-built 7,000 square foot brick building constructed in the late 19th Century and expanded over the years. If we did not purchase it, it too would have been razed. Here below is a photo of the building which proudly remains as headquarters for Storm Technologies. The loss of Wiscassett Mills was huge for Albemarle as Textiles were the number one employer of citizens. The total population of Stanly County was about 60,000. (in the 1990’s) Population of Albemarle about 16,000. Total Industrial jobs in Stanly County about 1970 was over 9,000. Most of these were textile workers and about 750 employed at the ALCOA Aluminum Smelting Plant in nearby Badin.

Storm Technologies Headquarters about 1998. The original Wiscassett Mills Executive and Administration Building.

The loss of Textile, Aluminum & Furniture jobs to the rest of the world after NAFTA was severe. It was hoped that “High Tech” jobs would replace these.  Well, after NAFTA came China’s entry into the WTO in 2001 and the rest is history. More on China’s rise later.

I am proud to say that Storm Technologies, Inc. continues business today under the leadership of my son Danny Storm. Over the years the company has earned awards as a leading business in Stanly County and the state. We are proud of these accomplishments but ever mindful that the building, which is the headquarters for Storm Technologies, with less than 50 employees was once the administrative building to manage thousands of textile workers. 

I am now retired but have fond memories of working through the struggles of building the business. The good and the bad.  Now, 32 years later I have time to reflect on my personal good experiences which took place 1992-2012 as our company grew. Danny and his management team have done outstanding work and progress since I retired. However, not without their own challenges today with the war on coal, increased Regulations and anti-business policies.

China Joins WTO

During this same period of NAFTA and China joining the WTO, the experiences for many American workers has not been as positive. Especially for textiles, furniture, steel and aluminum production. 

Let’s take a look at China trade for 2018 and see what China exports to the U.S.A. Today it is not only towels and pillowcases.

A reminder, Cannon Mills, which was the parent company of Wiscassett Mills, once manufactured most of the world’s towels, sheets and pillow cases. A retired executive from Cannon Mills told me, “at the peak production in the 1970’s Cannon Mills produced over 60% of the world’s towels, sheets and pillow cases”

Then came NAFTA and China’s membership in the WTO.

The chart below was published by Market watch in June 2019.

The highs (few) and lows (many) of U.S. trading with China

When China entered the WTO in 2001, they offered textiles, furniture and many low technology products. As they acquired the Intellectual Property of western nations that trusted China with long established trade secrets, China used these to produce world quality products. Most of them high tech. Remember the concerns raised by President Trump about Huawei providing 5G Telecommunications gear to America and European Nations? This is some of the highest technology equipment in the world. The threat of China passing America not only in economic growth but also in technological advancements is real. Mr. Trump, like Ross Perot in 1992, had a sense of realizing the consequences of wrong and unfair U.S. Trade Policies.

When I was a College student one instructor advised me. “Listen to experts and keep your mouth shut, then you will know what you know, plus what the other fellow knows” That seems to be the path of China. Except, I sincerely believe that the CCP was and remains dishonest and deceitful along the way to acquiring all that we know how to do. The Chinese Communist Party is no longer a Developing Nation. They have come a long way since entering the WTO. This is my personal take on China’s progress in business and industry 1992-2024.

Dick Storm

April 20, 2020, updated March 18, 2024

References and Further Reading

  1. Ross Perot video in 1992 Debate, Washington Post: https://www.washingtonpost.com/video/politics/perot-in-1992-warned-nafta-would-create-giant-sucking-sound/2019/07/09/1f2a84e9-a56c-4487-9c43-892ab1b0c782_video.html
  2. Dick Storm Presentation to the Delaware County Bar Association, 2016 on the Relationship of Energy Policy on Economic Prosperity and Industrial Production: https://dickstormprobizblog.org/2016/07/25/energy-and-economic-prosperity-my-thoughts-dick-storm/
  3. The Importance of Energy in Our Lives: https://dickstormprobizblog.org/2020/08/25/the-importance-of-energy-to-power-high-quality-of-life-part-1/.
  4. The Importance of Energy to Power Our High Quality Lives, Part 2, Aug. 28,2020 : https://dickstormprobizblog.org/2020/08/28/the-importance-of-energy-part-2-our-energy-sources/  
  5. The Importance of Energy, Part 3, Heat Engines, Sept. 9, 2020: https://dickstormprobizblog.org/2020/09/09/the-importance-of-energy-part-3-heat-engines-a-primer/
  6. The Importance of Energy for Economic Prosperity, Part 4, The Rise of the U.S and the Rise of China from an energy perspective: https://dickstormprobizblog.org/2020/09/21/part-4-the-importance-of-energy-to-economic-prosperity/
  7. Dick Storm thoughts on the “Green New Deal” , Oct. 10, 2020: https://dickstormprobizblog.org/2020/10/10/part-5-dick-storms-thoughts-on-the-green-new-deal/
  8. A Thriving Economy and Clean Air Too, Oct. 23, 2020 : https://dickstormprobizblog.org/2020/10/23/part-6-a-thriving-economy-and-clean-air-too/
  9. China’s Influence in the World and the Need to Reshore American Manufacturing, Nov. 3, 2020 : https://dickstormprobizblog.org/2020/11/03/chinas-economic-influence-in-the-world-and-some-thoughts-on-the-need-to-reshore-american-manufacturing/  
  10. Thank You President Trump, Nov. 13, 2020 : https://dickstormprobizblog.org/2020/11/13/thank-you-president-trump/
  11. Are You Worried about the Future of America? Jan. 21, 2021 Thoughts on Energy Policies, Industrial and Economic Growth: https://dickstormprobizblog.org/2021/01/21/are-you-worried-about-the-future-of-america/