Hyundai Motor is planning to construct a fourth plant in China, a company executive said on Friday, to bring the number of the carmaker’s plants to a total of seven with a combined capacity of 2.1 million cars.
“We are considering a fourth plant in China with an annual production capacity of 300,000 units,” said Seol Young-heung, Hyundai Motor’s vice chairman for the company’s Chinese operations.
Explaining the rationale behind the move, Seol said the Chinese auto industry is embarked on a path of continuous growth, and calculations indicate that demand would surpass supply by 2015.
Starbucks coffee ambassador in Korea Choi Yong-seok (left) on Thursday signed up to donate 5 million won for smaller coffee producers to Bronwyn Mullen, a goodwill ambassador to Korea from the World Fair Trade Organization, in Sinsa-dong, southern Seoul, as a part of the company’s fair trade campaign for World Fair Trade Day, which is Saturday. (Starbucks)
Potential locations are being considered in either the central or western regions of the country. “We haven’t decided on the exact date, and where the plant will be erected depends on policy coordination with the Chinese government,” the executive said.
Regarding the completion of Kia’s third plant in China, Hyundai Motor forecast that the date would be pushed forward to February next year, up from the originally expected April.
“With this plant, our production capacity in China would be enhanced to 1.8 million units,” Seol said.
For Kia alone, the capacity would be raised to 740,000 units.
Hyundai ― which has Kia under its umbrella ― has six production facilities in China, including one due for completion next year.
Seol on Friday was presented with a national medal for his role for paving the company’s way in China.
By Kim Ji-hyun (
jemmie@heraldcorp.com)
