US raid effect: Opening of Hyundai's plant delayed 2-3 months
What's the story
Hyundai's battery plant in Georgia, co-owned with South Korea's LG Energy Solution, is facing a major setback. The facility was raided by US immigration officials last week, leading to the arrest of some 475 workers. Hyundai CEO Jose Munoz has now confirmed that the opening of this plant will be delayed by at least two to three months due to the incident.
Raid details
Most arrested workers were employed by LG's suppliers
The Georgia plant was the site of the largest single-site enforcement operation in US Department of Homeland Security history. Munoz, who expressed surprise at the news of the raid, clarified that most of those arrested were workers employed by LG's suppliers. He said these specialized workers are typically hired during the construction phase of automotive battery plants to bring in skills and equipment not readily available in US.
Alternative plans
Hyundai to source batteries from other plants
In light of the delay caused by this raid, Munoz has said that Hyundai will source batteries from other plants. This includes a facility in Georgia co-owned with South Korean battery-maker SK On. The move is part of a contingency plan while they wait for their plant with LG to start operations.
Labor deportation
South Korean President expresses concerns
Following the raid, US authorities have deported over 300 South Korean laborers who were detained. The workers were taken from a detention center in southeast Georgia to Atlanta before being flown back to Seoul. South Korean President Lee Jae Myung has said that Korean companies may be hesitant to invest in US until improvements are made to the country's visa system.