Hyundai announced on Sunday that it will break ground in September for its third Chinese plant at the Beijing River Industrial Development Zone in Shunyi District. A company executive said, "We have finished final negotiations with the Beijing city government and all that remains is to sign the official agreement."
Beijing Hyundai, a joint venture between Hyundai Motor and Beijing Automotive Group, currently has two plants in Shunyi District that can produce a combined 600,000 vehicles a year. The company aims to sell at least 670,000 cars this year, and demand in China has already surpassed production capacity.
Hyundai had pushed for the third plant since the end of last year, but the negotiations were hindered by the Beijing city government's tough demands, including the transfer of more technology to Beijing Automotive and greater usage of Chinese-made parts.
Hyundai plans to build some 150,000 Avante compacts a year at the new plant from May 2012. According to industry insiders, the company is also considering a plan to produce its new Grandeur sedan (code-named "HG"), which is to be released in Korea late this year, at the plant from late 2012 for sale in the Chinese market.
[Source: The Chosun Ilbo]
Monday, July 26, 2010
Hyundai Gears Up for 3rd Chinese Plant Groundbreaking in September
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