Hyundai Motor Company, South Korea’s leading automaker, began construction of a third plant in China to respond to growing demand in the world’s hottest automobile market, it was announced today, Nov. 29.
Beijing Hyundai Motor Company (BHMC), a 50-50 joint venture between Hyundai Motor and Beijing Automotive Industry Holding Co., held a ground-breaking ceremony for a 400,000 unit/year plant on Nov. 28 in Shunyi District, Beijing.
The new plant is scheduled to be completed by July 2012. Combined with its two existing plants which roll out up to 300,000 units each, Hyundai will be capable of producing up to one million units in China by 2012.[ Also Read: Porsche to Pump $200 Million into its R&D Center ]
In the cutthroat auto business, Hyundai is trying to position itself as a leading automaker in the global market.
The PGA TOUR, Hyundai Motor America, and Seoul Broadcasting System International (SBS) have announced that Hyundai has become the title sponsor of the PGA TOUR’s season-opening tournament at The Plantation Course in Kapalua, Hawaii for the next three years.
As part of this agreement and commencing with the 2011 tournament, the event is being renamed the Hyundai Tournament of Champions, reintroducing the tournament’s original moniker that highlights the exclusive field of PGA TOUR tournament winners from the prior season. (Read: Hyundai Raises Big Voices in Big Places)[ Also Read: North American Intl Auto Show in Jan ]
“Today is a very important day for us, as we secure production capacity for one million units in China,” Mong-Koo Chung, chairman & CEO of Hyundai Motor, said at the ground-breaking ceremony.
“With its expanded capacity, Hyundai aims to be a leading passenger car maker and an exemplary company in the Chinese auto industry.”[ Also Read: Electric Cars to Pick Up Speed with New Tie-up ]
The ceremony was attended by about 700 guests, including other Hyundai Motor executives and Chinese government officials, including Chairman of the People’s Political Consultative Conference, Jia Qinglin, Hyundai suppliers, dealers and local media members.
BHMC expects this year’s sales to exceed its target of 690,000, which is already beyond its annual capacity of 600,000, while cumulative sales may surpass 2.5 million units.
The plant will be built on a 1.6 million m2 site. It will have a floor space of 300,000 m2, featuring vehicle production facilities such as stamping, welding, painting, assembly and module lines, as well as engine production facilities.
In particular, as the third plant is only 20 km northeast of the existing plants, cooperation and support between each plant at all stages of production and distribution will be maximized, the company says.
The third plant is scheduled to produce small or mid-size models specifically designed for the Chinese market starting from the second half of 2012, with plans to gradually expand its model lineup depending on demand.
Hyundai established BHMC in 2002, opening its first plant in China. It added a second factory in 2008, doubling its annual production capacity to 600,000 units.