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Hyundai Breaks Ground for Third Plant in China

- Hyundai’s production capacity in China to reach 1 mln units by 2012

- Hyundai continues to expand in world’s largest auto market

(Seoul, Korea) Hyundai Motor Company, South Korea’s largest automaker, began construction of a third plant in China to respond to growing demand in the world’s largest automobile market.


Beijing Hyundai Motor Company (BHMC), a 50-50 joint venture between Hyundai Motor and Beijing Automotive Industry Holding Co., held a ground-breaking ceremony for a 400,000 unit/year plant on Nov. 28 in Shunyi District, Beijing. The new plant is scheduled to be completed by July 2012 and combined with its two existing plants which roll out up to 300,000 units each, Hyundai will be capable of producing up to one million units in China by 2012.


“Today is a very important day for us, as we secure production capacity for one million units in China,” Mong-Koo Chung, Chairman & CEO of Hyundai Motor, said at the ground-breaking ceremony. “With its expanded capacity, Hyundai aims to be a leading passenger car maker and an exemplary company in the Chinese auto industry.”

The ceremony was attended by about 700 guests, including other Hyundai Motor executives and Chinese government officials, including Chairman of the People's Political Consultative Conference, Jia Qinglin, Hyundai suppliers, dealers and local media members.


BHMC expects this year’s sales to exceed its target of 690,000 which is already beyond its annual capacity of 600,000, while cumulative sales may surpass 2.5 million units. The plant will be built on a 1.6 million m2 site, while the plant will have a floor space of 300,000 m2, featuring vehicle production facilities such as stamping, welding, painting, assembly and module lines, as well as engine production facilities.


In particular, as the third plant is only 20 km northeast of the existing plants, cooperation and support between each plant at all stages of production and distribution will be maximized. The third plant is scheduled to produce small or mid-size models specifically designed for the Chinese market starting from the second half of 2012, with plans to gradually expand its model lineup depending on demand.


Hyundai established BHMC in 2002, opening its first plant in China. It added a second factory in 2008, doubling its annual production capacity to 600,000 units. So far this year, as of the end of October, BHMC has sold 569,787 units.

Established in 1967, Hyundai Motor Co. has grown into the Hyundai Motor Group which was ranked as the world’s fifth-largest automaker since 2007 and includes over two dozen auto-related subsidiaries and affiliates. Employing over 75,000 people worldwide, Hyundai Motor sold approximately 3.1 million vehicles globally in 2009, posting sales of US$41.8 billion (including overseas plants, using the average currency exchange rate of 1,276 won per US dollar). Hyundai vehicles are sold in 193 countries through some 6,000 dealerships and showrooms. Further information about Hyundai Motor and its products are available at www.hyundai.com.