Manufacturing News

Hyundai opens 4th assembly plant in China

Beijing Hyundai Motor Co. launched production in the north China city of Cangzhou on Monday. The 12 billion yuan ($1.8 billion) factory, Hyundai's fourth plant in China, can produce 200,000 vehicles a year.

The company says the plant's annual production capacity will increase to 300,000 vehicles by 2018.

Beijing Hyundai's three other assembly plants are in suburban Beijing, 200 kilometers (124 miles) north of Cangzhou, and can build slightly more than 1 million vehicles annually.

A fifth plant, under construction in the southwest China municipality of Chongqing, is to start production next year with annual capacity of 300,000 vehicles.

Beijing Hyundai, a 50-50 partnership between BAIC Motor Group and Hyundai, has underperformed the overall Chinese light-vehicle market this year. For the first nine months, Beijing Hyundai's sales have risen 6 percent from a year earlier to about 779,000 vehicles while China's light-vehicle sales have surged 29 percent year on year to 16.8 million.

Hyundai affiliate Kia Motors runs three plants with Dongfeng Motor Corp. in east China's Jiangsu province, which together can produce up to 920,000 vehicles a year. Kia's China sales through September rose 4 percent to 432,849 vehicles.

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