We signed MOU with China Guangzhou Automobile Company in reference to the establishment of China Commercial Vehicle Joint Venture Plant.
1. Type of plan : Establishment of Commercial Vehicle Joint Venture plant in Guangzhou, China.
2. Objective of plan : To response to the fast growing commercial vehicle demand in China.
3. Schedule :
- June 21, 2005 ? Signing MOU
- End of 2005 ? Completion of incorporation and ground breaking of new plant
- 2007 : Anticipating start of production
4. Estimated investment amount :
- Total investment of USD 1.24 billion for 200,000 capacity including initial investment amount USD 430 million. (Each company will hold 50% stake of total investment.)
5. Contents :
i) Name of company :
Guangzhou Hyundai Motor Company(tentative)
ii) Partner of joint venture :
Guangzhou Automobile Company
iii) Ratio : 50:50
(Hyundai Motor Group : Guangzhou Automobile Group)
iv) Scope of Joint Venture : Commercial vehicle business including R&D, production, sales, A/S and distribution etc.
v) Capacity expansion plan
Year 2007 : 20,000 units
Year 2009 : 50,000 units
Year 2011 : 200,000 units
We will disclose any further details upon its conclusion by the end of December, 2005.
Name of Disclosure Officer : Yoo No Hwang,
Director, Head of Financial Management Group
* The above statement is in response to the Korea Stock Exchange inquiry made on May 13, 2005
