Kia Motors Corporation has announced that it plans to build a third manufacturing plant in China in order to meet dramatically increasing local demand and to maintain its positive sales momentum in the Chinese market.
The signing ceremony for the investment MOU (Memorandum of Understanding) to build the new Dongfeng Yueda Kia Plant 3 in Yancheng, Jiangsu Province was attended by more than 50 Chinese government officials and Kia Motors representatives, including Hyundai Motor Group Chairman, Mong-Koo Chung. Dongfeng Yueda Kia (DYK) Motors is a 50/50 joint venture through which Kia Motors manufactures, markets and services vehicles in China.
Upon completion of the plant, which will be able to produce 300,000 units annually, Kia will have increased its production capacity in China from the current 430,000 units at its existing two plants to a total of 730,000 units per year.
Mr. Chung said, “Kia is one of the fastest growing automotive companies in the Chinese market and this would not be possible without the continuous support and cooperation from the governments and citizens of Jiangsu and Yancheng.
“With our third China plant, which we will begin constructing at the end of next year, Kia will be well-positioned to provide its growing Chinese customer base with stylish, safe, reliable and high-quality vehicles while also helping to further develop the local economy and improve people’s lifestyles,” he added.
The new plant will be located just five kilometers from Kia’s second plant in Yancheng’s Economic and Technology Development Zone. The close proximity to the existing facility will enable Kia to utilise the established infrastructure and to create synergies between the plants.
Kia plans to begin construction of the new plant at the end of next year and anticipates completion of the facility and the roll-out of production models in the second half of 2014.