Kia JV Breaks Ground on Third Plant in China
Annual capacity at the plant is 300,000 vehicles, but it is designed for expansion to 400,000 units. Kia’s two other plants in China have total yearly capacity of 430,000.
Kia and its Dongfeng Yueda Kia joint venture breaks ground on a new vehicle-assembly plant in China’s Jiangsu province.
The facility, which will house a technology research center and has a 1.2-mile (1.96-km) test track, will be operational in second-half 2014. A Kia spokesman says it will manufacture China-specific vehicles.
Annual capacity at the plant in the Yancheng Economic Development Zone is 300,000 vehicles, but it is designed to expand to 400,000 units. Kia already operates two plants in Yancheng with total yearly capacity of 430,000.
“Today is a special day marking Kia’s next step toward becoming a leader in the Chinese auto industry,” Chung Mong Koo, chairman of Hyundai Motor Group, which includes Kia, says at the groundbreaking ceremony. “This third plant will be an opportunity for us to make further progress on the quality front as well as increase overall customer satisfaction.
“I believe that Dongfeng Yueda Kia will become one of the most trusted brands in the Chinese automotive industry.”
Dongfeng Yueda Kia sales totaled 185,543 units through May, a 16.7% year-over-year increase. The JV’s market share in China is 3.6%.
About the Author
You May Also Like
