-- 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 2014
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 facility.
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
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
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.
Kia Canada Inc. Media Contacts: Cathy Laroche Public Relations Manager (C):
Daniel Ponzini Public Relations and Events Coordinator (O): 905.755.6415 (C):
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CO: KIA Canada Inc.
-0- Jun/29/2012 15:17 GMT
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