Hyundai to open two new plants in Hebei & Chongqing by 2016

Updated: 19 Aug 2014
Share this news?...Click box   Bookmark and Share
Read more on Hyundai   Hebei     

The logo of Hyundai Motor is seen on a car displayed at a Hyundai dealership in Seoul July 26, 2012.

 

Hyundai will remodel a car manufacturing plant that previously belonged to a Chinese partner, a move expected to help pave the way for the automaker to build a separate factory in western China.

The South Korean company, which only has factories in eastern China, has said it intends to build a plant in China's southwestern city of Chongqing.

 

The factory would help it reach customers in western parts of the country, according to Reuters.

"Local demand is increasing and our rivals upped their production. If we fail to increase our production, there is a consensus that the current market share of 8.8 may be threatened," a Hyundai official said to The Korea Times.

Hyundai has yet to obtain approval from China's central government, with South Korean media claiming that it is under pressure to build a plant in the northeastern province of Hebei.

The automaker now plants to remodel a Beijing plant owned by its Chinese partner, Beijing Automotive Industry Holding Co., in addition to pursuing its plan with its partner for a factory in Chongqing.

"We need to build another Chinese plant to maintain our current market share, at a time when our rivals Volkswagen and General Motors have expanded their facilities," the official said.

Both plants are set to be completed sometime by 2016.

Hyundai's annual production capacity in China is 1 million vehicles. The two plants would allow the company to turn out 500,000 to 600,000 more cars.

"That could be beneficial in the long term, but could raise management risk in the short term," the Hyundai Motor official said.

Volkswagen recently received approval from Beijing to establish two more plants.

 

SOURCE: www.autoworldnews.com

Editorial Message
This site contains materials from other clearly stated media sources for the purpose of discussion stimulation and content enrichment among our members only.
whatsontianjin.com does not necessarily endorse their views or the accuracy of their content.
For copyright infringement issues please contact editor@whatsontianjin.com
Share this news?...Click box   Bookmark and Share
Comments Area ( Total Comments: 0 )
  

Hebei News

New university in Hebei bears striking similarity to Harry Potter school
New university in Hebei bears striking similarity to Harry Potter school
Looks familiar? The building brings to mind the set of the Harry Potter films   The designers say that the st...
Migrant workers in Hebei paying the price for a cleaner future
Migrant workers in Hebei paying the price for a cleaner future
A steel mill seen through the broken window of an abandoned block of flats in Tangshan, Hebei. The province aims to sl...
15 rare monkeys rescued in Heibei smuggling plot
15 rare monkeys rescued in Heibei smuggling plot
Photo taken yesterday shows rescued macaques in the Congtai Park Zoo in Handan, north China's Hebei Province. Police y...
Oversized affordable houses built exclusively for officials
Oversized affordable houses built exclusively for officials
An apartment at the Sweet Homeland community in Xingtai, Hebei province.   Apartments in an affordable housing...
Pupils practice smog-fighting exercises in Shijiazhuang primary school
Pupils practice smog-fighting exercises in Shijiazhuang primary school
  A primary school in Shijiazhuang city, Hebei province, has created a set of aerobic exercises featuring martia...
Hebei man says walking in 200kg shoes cures his back pain
Hebei man says walking in 200kg shoes cures his back pain
Zhang Fuxing posing for a photo with his iron shoes at his office in Tangshan, in northern China's Hebei province. &n...