1. On September 8, 2004, Hyundai Motor had concluded a Memorandum of Understanding (MOU) signing with Jianghuai Automobile Corporation for the establishment of a joint commercial vehicle assembly plant at Anhui Province, which will include buses, trucks and engines. This establishment is for the active correspondence to the rapidly increasing commercial vehicle market in China.
The total anticipated investment amount for the 50-50 joint venture will be USD 780 million up to the year 2010.
The plant that will be established through this MOU is expected to produce 50,000 small passenger vehicle engines p.a.; 90,000 small, medium and large trucks p.a.; and 10,000 buses p.a. among others to total 150,000 unit productions p.a. up until the year 2010.
Jianghuai Automobile Co. is a truck and bus manufacturer with an annual capacity of 170,000 units p.a., and the company currently assembles 25,000 Starex minivan units, according to the Technical Alliance formed with Hyundai Motor in February 2003.
Through this joint operation, both companies look to achieve an economies of scale within China`s commercial vehicle market.
2. Because the above details are based on the current MOU agreement, they are subject to change, and there will be a subsequent announcement after the conclusion of the formal contract.
