Shinhwa Plans $37 Million Expansion in Auburn

Investment incorporates Italian toolmaker SAPP S.p.A. into Shinhwa's Alabama operations.

Published on Mar. 4, 2026

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Shinhwa, a manufacturer of aluminum die cast automotive parts, is planning a $37 million expansion of its plant in Auburn, Alabama. The investment will incorporate Italian toolmaker SAPP S.p.A. into Shinhwa's Auburn operations, further strengthening the manufacturing ecosystem of die casting companies in the state.

Why it matters

Shinhwa's expansion is a positive sign for Alabama's growing auto sector, indicating continued growth opportunities for companies in the state. The addition of SAPP's toolmaking capabilities to Shinhwa's Auburn facility is expected to enhance the company's technical capabilities and allow it to better serve its customers.

The details

Shinhwa began operating in Auburn in 2020 and has expanded multiple times since then. This latest $37 million investment comes after Shinhwa's acquisition of SAPP. The expansion will create a vertically integrated U.S.-based company, leveraging SAPP's advanced engineering knowledge to further enhance Shinhwa's technical capabilities as a manufacturer of complex and integrated aluminum car systems.

  • Shinhwa began operating in Auburn in 2020.
  • Shinhwa has expanded multiple times since 2020.
  • This latest $37 million investment comes after Shinhwa's acquisition of SAPP.

The players

Shinhwa

A manufacturer of aluminum die cast automotive parts that is expanding its operations in Auburn, Alabama.

SAPP S.p.A.

An Italian toolmaker that is being incorporated into Shinhwa's Auburn operations as part of the $37 million expansion.

Ellen McNair

Secretary of the Alabama Department of Commerce, who commented on the continued growth opportunities in Alabama's auto sector.

Ron Anders

Mayor of Auburn, Alabama, who welcomed Shinhwa's investment and expansion in the city.

Kwi Hyun Lee

Chairman of Shinhwa Group, who discussed the importance of the expansion and the incorporation of SAPP's capabilities.

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What they’re saying

“The investment is a good indicator of the continued growth opportunities that companies find in Alabama's auto sector.”

— Ellen McNair, Secretary of the Alabama Department of Commerce (businessalabama.com)

“Shinhwa is once more growing its operations in Auburn, proving yet again that our city is fertile ground where businesses thrive.”

— Ron Anders, Mayor of Auburn (businessalabama.com)

“This expansion is an important milestone that allows us to create a vertically integrated U.S.-based company. Leveraging SAPP's advanced engineering knowledge will further enhance our technical capabilities as manufacturer of complex and integrated aluminum car systems and will enhance our capabilities to service our customers quickly and efficiently.”

— Kwi Hyun Lee, Chairman of Shinhwa Group (businessalabama.com)

What’s next

Shinhwa plans to complete the $37 million expansion and integration of SAPP's toolmaking capabilities into its Auburn facility by the end of 2026.

The takeaway

Shinhwa's continued investment and expansion in Auburn, Alabama demonstrates the state's attractiveness for automotive manufacturers and the growing strength of the local manufacturing ecosystem. The incorporation of SAPP's advanced engineering expertise is expected to further enhance Shinhwa's capabilities and competitiveness in the industry.