Hyundai builds 2nd China plant
Apr. 18, 2006. 07:32 AM
ASSOCIATED PRESS
SEOUL ¡ª Hyundai Motor Co., South Korea’s top vehicle maker, said Tuesday it has begun construction on its second auto plant in China, a project involving a total investment of $1 billion (U.S.).
The Beijing plant, which will also include a new research centre, will have an annual capacity of 300,000 vehicles as Hyundai expands its presence in the world’s fastest-growing auto market, the Seoul-based company said in a statement.
“Through continuing growth in China, which is an important center of our global strategy, we will establish our firm position as a global auto maker,” Hyundai chairman Chung Mong-Koo said in the statement.
Once construction is completed in 2007, Beijing Hyundai Motor Co., a 50-50 joint venture with between Hyundai and Beijing Automobile Investment, will have an annual production capacity of 600,000 vehicles a year from 2008, the statement said.
Hyundai Motor already has a plant in Beijing with an annual capacity of around 300,000 vehicles.
The new plant will create about 3,200 jobs and will add five new models in China, on top of five models that are currently being produced at Hyundai’s existing plant.
Beijing Hyundai Motor sold 66,814 vehicles this year through March from a 2006 sales target of 300,000 vehicles. In 2005, Beijing Hyundai sold 233,668 vehicles.
Hyundai, along with its affiliate Kia Motors Corp., aims to become the world’s sixth-largest carmaker by 2010 and is aggressively expanding overseas production to meet the goal.
Last month, Hyundai announced that it will build a plant in the Czech Republic, while Kia will build a plant in the U.S. state of Georgia.
Hyundai has four overseas production bases in China, India, Turkey and the U.S.