Seoul, South Korea – Kia will build a third manufacturing plant in China to meet dramatically increasing local demand and to maintain its sales momentum in the Chinese market.
Kia operates through Dongfeng Yueda Kia (DYK) Motors, a 50/50 joint venture through which Kia manufactures, markets and services vehicles in China.
The plant will be able to produce 300,000 units annually, and when it is completed, Kia will have increased its production capacity in China from the current 430,000 at its existing two plants to a total of 730,000 units per year.
Construction on the plant is expected to begin at the end of next year, with completion and the roll-out of production models scheduled for the second half of 2014.
In China, Kia sells the K5 sedan, known as the Optima in other markets, and the subcompact K2, a localized version of the all-new Rio. Combined with Kia’s sister company Hyundai, which has an annual capacity in China of 720,000, the automakers are expected to reach sales of around 1,150,000 units in 2011, placing it third in the Chinese market behind Volkswagen and General Motors.