TELFORD, TN—A South Korean auto parts supplier will locate its first U.S. assembly plant here.

Sungwoo Hitech America Corp. will invest $40 million to buy and equip and existing 380,000-square-foot factory building in the city. Sungwoo has committed to creating 117 jobs by 2025 and 206 positions by 2027. The jobs are expected to pay an average annual salary of $35,000.

Suk Je Lee, the CEO and president of Sungwoo Hitech America, told local government and economic development leaders that his company hopes to continue to expand its operations in the United States. The company already has a contract with General Motors to build components for electric vehicles that could result in an additional plant in the near future.

The company manufactures stamped metal components for the automotive industry, including bumpers and side panels for GM, Kia and Volkswagen. Renovations have already begun at the Telford plant, which is expected to begin production in early 2022.