Hyundai to Double Capacity at Turkish Joint Venture

VIENNA – Hyundai Assan, the Turkish joint venture owned 70% by Hyundai and 30% by Turkey’s Kibar Holding, will double its annual production capacity to 200,000 units from the current 100,000 by the end of 2013.

The current capacity of 100,000 vehicles is calculated on the basis of two shifts and some overtime.

In addition to the Hyundai i20 hatchback, which has been manufactured since 2010 at Hyundai Assan’s plant in Izmit, the auto maker will add production of the next-generation Hyundai i10 small car in 2013.

Hyundai Assan plans to invest $385 million in the capacity increase over an 18-month period. The JV also will invest $225 million in suppliers.

The investment is expected to create about 750 new jobs at the Hyundai Assan plant and 1,650 at suppliers.

“The year 2012 marks the 15th anniversary of the establishment of the Turkey factory and we have produced more than 700,000 vehicles since 1997, contributing to Turkey’s economy,” Hyundai Assan President and CEO Won-Shin Chang says during a ceremony celebrating both the investment announcement and the production launch of a facelifted i20.

“With the new investment to raise our production capacity to 200,000 units, we will be able to better meet the rising demand from our customers in Europe and Turkey.”

The restyled i20 was unveiled at this year’s Geneva auto show.

Hyundai Assan manufactured 90,231 cars last year, up 17% from 2010. It exported about 64,000 vehicles in 2011.

The i20 currently is the only model manufactured at Hyundai Assan. Production of an old-generation Hyundai Accent Era sedan was phased out in February. The JV produced 28,712 cars this year through April.