Hyundai begins building 4th plant in China
Beijing Hyundai Motor Co. broke ground for its fourth China plant on Friday in Cangzhou in northeast China's Hebei province to ramp up local output.
The 12 billion yuan ($7.4 billion) factory will assemble up to 300,000 vehicles a year and will start production late next year, according to Hebei's provincial government.
The Cangzhou plant's first two products will be a compact sedan and an SUV, the government said.
Beijing Hyundai is Hyundai Motor Co.'s joint venture with BAIC Motor Group Co. Later this year, the partnership will start building its fifth China plant in the southwest China municipality of Chongqing.
The Chongqing plant, which will produce up to 300,000 vehicles a year, is slated to become operational in 2017.
Beijing Hyundai's three existing plants are in Beijing, 200 kilometers north of Cangzhou. The three facilities now can build slightly more than 1 million vehicles annually.
Hyundai affiliate Kia Motors also plans to expand capacity at one of its three joint-venture assembly plants in east China's Jiangsu province to 450,000 vehicles next year, up from 300,000 units now.
Dongfeng Yueda Kia Automobile Co., currently has the capacity to build 800,000 vehicles a year. Dongfeng Yueda Kia is a partnership between Kia and two Chinese companies -- Dongfeng Motor Corp. and Jiangsu Yueda Investment Co.
Hyundai and Kia expect to have a combined China production capacity of 2.7 million passenger and commercial vehicles by 2018, compared with 1.95 million vehicles last year.
Last year, Hyundai's China sales rose 8 percent year on year to 1.13 million units while Kia's deliveries increased 17 percent to 677,480 units, according to LMC Automotive.
The Cangzhou plant's first two products will be a compact sedan and an SUV, the government said.
Beijing Hyundai is Hyundai Motor Co.'s joint venture with BAIC Motor Group Co. Later this year, the partnership will start building its fifth China plant in the southwest China municipality of Chongqing.
The Chongqing plant, which will produce up to 300,000 vehicles a year, is slated to become operational in 2017.
Beijing Hyundai's three existing plants are in Beijing, 200 kilometers north of Cangzhou. The three facilities now can build slightly more than 1 million vehicles annually.
Hyundai affiliate Kia Motors also plans to expand capacity at one of its three joint-venture assembly plants in east China's Jiangsu province to 450,000 vehicles next year, up from 300,000 units now.
Dongfeng Yueda Kia Automobile Co., currently has the capacity to build 800,000 vehicles a year. Dongfeng Yueda Kia is a partnership between Kia and two Chinese companies -- Dongfeng Motor Corp. and Jiangsu Yueda Investment Co.
Hyundai and Kia expect to have a combined China production capacity of 2.7 million passenger and commercial vehicles by 2018, compared with 1.95 million vehicles last year.
Last year, Hyundai's China sales rose 8 percent year on year to 1.13 million units while Kia's deliveries increased 17 percent to 677,480 units, according to LMC Automotive.
