[Originally published in the OTHER paper, Eugene, Oregon July, 1996.]
Hyundai hanky-pankyby Wanda Ballentine
Is 'Hyundai Semiconductors America, Inc.' for real?
Mayoral candidate Jim Weaver challenged both EWEB and the City of Eugene as to whether the Hyundai corporation they're dealing with is a bona fide corporation. "Hyundai Semiconductors America, Inc." is the name on the Certificate of Authority Hyundai obtained from the Oregon Secretary of State to allow it to operate in Oregon, though it was introduced to Eugene as 'Hyundai Electronics America.' The Public Information Network Directory of Transnational Corporations lists under Hyundai entities in the U.S., Hyundai, USA, operating in New Jersey and Fountain Valley, CA, and Hyundai Electronics in San Jose.
It appears that 'Hyundai Semiconductors America, Inc.' (HSA) is a paper tiger with no assets. The money it's using to build the West Eugene plant is a loan from the parent company. Weaver excoriated both EWEB and the City for never having asked for HSA's balance sheet. His challenge gave new meaning to project opponents' warnings about the effects on the city in the event Hyundai defaults and closes up shop before the three years of abatements are up and the company starts to pay taxes. Lehigh, Utah, has been facing this dilemma since Micron suddenly reconsidered its decision to locate there, leaving the city with millions in unpaid infrastructure costs.
Both the City and EWEB have postponed signing contracts until this matter is clarified. EWEB is holding a public hearing on July 22, and the City Council is re-scheduling its consideration of Hyundai's wastewater contract.
©Wanda Ballentine, 1996