December 11, 2007

Kia opens second production plant in China

Seoul, South Korea – Kia Motors has announced that in conjunction with its joint venture Dongfeng Yueda Kia (DYK) Motors, it has officially opened its second manufacturing facility in China. The opening was marked by a ceremony in Jiangsu Province on Saturday.

The US$800 million passenger car production facility will have an annual production capacity of 300,000 units when it is fully operational by 2010, bringing Kia’s total production capacity in China to 430,000. The Chinese plants, along with a plant in Slovakia opened in December 2006 and Kia’s first North American plant, scheduled to open in Georgia in the second half of 2009, will bring Kia’s annual overseas production capacity to 10,030,000 units.

In 2008, Kia plans to produce 100,000 units at each Chinese plant; by 2010, it expects to sell 440,000 vehicles in the Chinese market. The new plant began producing the Cerato sedan in October, with a hatchback model added earlier this month. Kia plans to introduce a new model for production at the new plant in 2009 and is currently assessing Chinese market trends and conditions before finalizing the next model. The new plant currently employs 1,400 workers; plans call for an additional 1,350 employees.

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