A major Kia supplier announced Wednesday that it will locate its first U.S. plant in LaGrange near the Kia Motors Manufacturing Georgia facility.

Sewon Precision plans to create 700 jobs and invest $170 million in a facility to manufacture automotive components for the Kia plant in West Point over a three-year period.

"Landing a top-tier supplier such as Sewon Precision indicates that communities across West Georgia are continuing to benefit from Kia's decision to locate in our state," Gov. Sonny Perdue said in a statement. "Suppliers have announced upward of 2,000 jobs on top of the 2,800 that Kia will bring."

Sewon Precision, based in Daegu, South Korea, will produce stamped chassis and body components and some decorative trim pieces for the plant. The company has selected a 65-acre site at the Callaway South Industrial Park in Troup County.

Construction will begin in the spring on the 420,000-square-foot building. The facility is scheduled to go into production in fall 2009.

The Sewon Group, which is the parent company of Sewon Precision, has a more than 20-year history as a Kia supplier in South Korea. Mr. Perdue met with senior Sewon officials in October during the Kia supplier dinner in Seoul.

"We are looking forward to making LaGrange and Georgia our new home," Moon-Ki Kim, the CEO and chairman of Sewon Precision Industrial Co. Ltd., said in a statement. "Sewon Precision is celebrated for its high-quality automotive parts, and I know we will continue our tradition of excellence here."

On Wednesday, Sewon officials and representatives from the Development Authority of LaGrange signed a memorandum of understanding regarding the project.