300,000-unit annual capacity plant to bring Kia's total manufacturing
capacity in China to 730,000 cars per year
Facility to build China-specific models upon completion in first half of
SEOUL, June 29, 2012 /CNW/ - Kia Motors Corp. and its Chinese
subsidiary, Dongfeng Yueda Kia Motor Co., Ltd., held the groundbreaking
ceremony for its third plant in the Yancheng Economic Development Zone
(Jiangsu Province) today, officially signaling the start of
construction of the automaker's newest state-of-the art manufacturing
The plant, which will boast an annual capacity of 300,000 vehicles when
completed in the first half of 2014, is an aggressive move by Kia to
further strengthen its presence in China, which has become the world's
largest automotive market. Combined with the current annual capacity
from its two existing plants in the Yancheng Economic Development Zone,
which have annual capacities of 130,000 and 300,000 units, Kia will be
able to produce a total of 730,000 vehicles locally in China.
Approximately 1,000 guests attended the ceremony, including the Chairman
of Hyundai Motor Group, Mong-Koo Chung; Secretary of Jiangsu Province,
Luo Zhijun; and Secretary of Yancheng, Zhao Peng.
During his welcome speech, Mr. Chung said, "Today is a special day,
marking Kia's next step toward becoming a leader in the Chinese auto
industry. This third plant in China will be an opportunity for us to
make further progress on the quality front as well as increase overall
customer satisfaction. I believe that Dongfeng Yueda Kia will become
the one of the most trusted brands in the Chinese automotive industry."
The new plant will be located in the Yancheng Economic Development Zone
only 5 km away from Kia's second plant, enabling utilization of various
existing infrastructure facilities and thereby maximizing synergies
among all three plants.
In addition to state-of-the-art press, body, painting, assembly and
engine module processes, the plant will house a technology research
center and 1,960-meter high-speed test track. Furthermore, the flexible
layout of the third plant will give the automaker the freedom to expand
annual capacity by 100,000 units to 400,000 units, as a continued
increase in market demand is expected. Upon completion of the plant in
the first half of 2014, Kia plans to produce China-specific models that
reflect local market preferences.
Furthermore, Kia plans to support business expansion and market entry of
its affiliate companies as a way of helping enhance their global
competitiveness and making a larger contribution to the local economy
through job creation and new investment.
Secretary of Jiangsu Province, Luo Zhijun, said, "When Dongfeng Yueda
Kia started its business in China, many doubted it would find success.
However, it has quickly become a representative automotive company in
Jiangsu Province, and I expect that the establishment of its third
plant will enable Kia to make even more rapid progress in becoming
truly admired by Chinese customers."
Dongfeng Yueda Kia has recorded significant growth in the Chinese
market, tallying sales of 432,518 units in 2011 for a 326% increase
versus 2007 (101,427 units). So far in 2012 (through May), thanks to
the popularity of locally produced models like K2 (China-specific
version of the B-segment Rio), C-segment Forte (known as Cerato in some
markets) and Sportage CUV, sales reached 185,543 units for 16.7%
year-on-year growth, which exceeds average industry demand in China of
6.0% for the same period.
Meanwhile, Dongfeng Yueda Kia's market share has grown from 1.9% in 2007
(18th in the industry) to 3.6% last year (8th in the industry). And so
far this year, its market share has remained at 3.6% while its industry
rank has gained a spot to 7th place in China.
Kia Canada Inc. (www.kia.ca - www.facebook.com/kiacanada) -- a maker of quality vehicles for the young-at-heart -- is a
subsidiary of Kia Motors Corporation (KMC) in Korea was founded in 1999 and sells and services
high quality class leading vehicles like the Soul, Forte, Optima and
Sorento through a network of 173 dealers nationwide. Kia Canada Inc.
employs 162 people in its Mississauga, Ontario headquarters and four
regional offices across Canada. Kia's brand slogan -- "The Power to
Surprise" -- represents the company's global commitment to surpassing
customer expectations through continuous automotive innovation.
SOURCE KIA Canada Inc.
For further information:
Kia Canada Inc. Media Contacts:
Public Relations Manager
Public Relations and Events Coordinator