Hyundai signs a deal to build a third plant in China
- Plant to have annual production capacity of 400,000 units, completed by 2012
- New plant will increase Beijing Hyundai Motor Co.’s capacity to one million units a year
(Sept. 13, 2010) Beijing Hyundai Motor Company (BHMC), a 50-50 joint venture between Hyundai Motor Company and Beijing Automotive Industry Holding Co., today said it would begin building a third factory in China. A signing ceremony between BHMC and government officials was held at the Kunlun Hotel in Beijing today, attended by over 50 Group executives, employees, and government officials, including Mr. Noh Jae-Man, President of BHMC.
The third factory will increase Hyundai’s total production in China to 1 million units from the current 600,000 units. Construction will begin this October with the target of completion by 2012. Located at the Beijing industrial development zone in Shunyi District, the new facility will be just 20 km away from BHMC’s No. 2 plant.
BHMC sold a total of 570,000 vehicles last year and aims to sell 670,000 units this year, making the construction of a new plant imperative. Hyundai is well on track to meet the 2010 sales target of 670,000 vehicles, having already sold 437,000 units from January through August this year.
“By using the latest technology, the new manufacturing plant will feature more advanced facilities than the second plant, enabling us to build a world-class plant that meets our highest standards for product quality and environmental protection,” said Mr. Noh, President of BHMC.
Hyundai started selling cars in China in 2002 and its cumulative sales reached 2 million units by April of 2010. Hyundai expects a combined 4 million units of car sales by 2012 when the third plant is completed.