Kia breaks ground on third China plant

    --  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 
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. ( - -- 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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