Hanon Systems to build $170 million factory in Tennessee

Hanon Systems will invest $170 million to build an automotive thermal solutions factory in Tennessee, aiming to expand its presence in the fast-growing EV market.

Hanon Systems will invest $170 million to build an automotive thermal solutions factory in Tennessee, aiming to expand its presence in the fast-growing EV market.

The factory, which will be situated in Loudon County, Tennessee, will be Hanon Systems' fourth factory in the United States.

Daejeon-based Hanon Systems produces thermal solutions for automotive manufacturers. This includes heating ventilation, air-conditioning, powertrain cooling, compressors, fluid transport, electronics and fluid pressure.

The thermal solutions produced at the factory will be supplied to automakers with facilities in the North American region.

Around 600 new jobs will be created.

“Tennessee is at the center of the automotive industry, and Hanon Systems’ decision to invest nearly $170 million in Loudon County is a testament to Tennessee’s unmatched business climate, thriving economy and highly skilled workforce," said Bill Lee, governor of Tennessee. "I thank Hanon Systems for creating 600 new jobs that will create a tremendous opportunity for Tennesseans across the region."

On Tuesday, SK On named Sung Min-suk, the former CEO of Hanon Systems, as its first chief commercial officer.

SK On is an EV battery maker 100 percent owned by SK Innovation.

BY SARAH CHEA [chea.sarah@joongang.co.kr]