Kia began building a third factory in China
• The annual capacity of the plant to 300,000 units bring the total production capacity in China Kia 730,000 vehicles per year.
• Once a finished in the first half of 2014, the plant will produce its own models to China.
Today, Kia Motors Corp.. and its Chinese subsidiary, Dongfeng Yueda Kia Motor Co., Ltd.., held the opening ceremony of the work of a third factory in the area of economic development Yancheng (Jiangsu Province), officially signaling the start of construction the most recent manufacturing tech manufacturer.
The plant, which will boast an annual production capacity of 300,000 vehicles once in service in the first half of 2014, is a bold move Kia to strengthen its presence in China, which is now the largest automotive work in the world. With this factory and two others in the area of economic development Yancheng, which have an annual production capacity of 130,000 and 300,000 units, respectively, Kia will be able to build a total of 730,000 vehicles in China.
Some 1,000 guests attended the ceremony, including the president of Hyundai Motor Group, Chung Mong-Koo; the secretary of Jiangsu Province, Luo Zhijun; and the secretary of Yancheng District, Zhao Peng.
In his welcome speech, Mr. Chung said: "Today is a special day for Kia, the beginning of the next step in his quest for a place as a leader in the Chinese automotive industry. The third factory in China is an opportunity to make progress in terms of quality and increase overall customer satisfaction. I think Dongfeng Yueda Kia will become one of the most trustworthy of the Chinese automotive industry brands. "
The new plant will be situated in the area of economic development Yancheng, only 5 km from the second Kia plant, which will make possible the use of various facilities and infrastructures and, therefore, maximize the synergy of the three plants.
In addition to the processes of the press, painting, assembly and manufacturing body and advanced engines, the plant will include a technology research center and a test track speed of 1960 meters. Moreover, the flexible Layouts of the third plant will give the manufacturer the flexibility to add 100 000 400 000 units to its annual production capacity, since it is expected that the market demand continues to freedom increase. Once the plant COMPLETED, in the first half of 2014, Kia plans to build own models to the Chinese market that will reflect local preferences.
Kia also provides for support expansion and market entry of its affiliated companies to help them increase their competitiveness on the world stage and further contribute to the local economy through the creation of jobs and new investment.
The secretary of Jiangsu Province, Luo Zhijun, stated: "When Dongfeng Yueda Kia has made its debut in China, many doubted its success. However, the manufacturer has quickly become a leading automobile company in Jiangsu Province and I expect that the opening of the third plant makes Kia a company actually admired Chinese consumers even faster. "
Dongfeng Yueda Kia has experienced considerable growth in the Chinese market, with sales of 432,518 units in 2011, an increase of 326% compared to 2007 (101,427 units). Since the beginning of the year 2012 (until May), thanks to the popularity of locally produced models such as K2 (Chinese version of the subcompact Rio), the small car Forte (sold under the name Cerato in some areas) and the Sportage crossover vehicle sales totaled 185,543 units, which is equivalent to an increase of 16.7% compared to last year and exceeded the average demand in the industry in China, 6, 0% for the same period.
In the meantime, the market share of Dongfeng Yueda Kia rose from 1.9% in 2007 (18th in the industry) was 3.6% last year (8th). And this year, the market share remained stable at 3.6%, which is now worth him 7th in China.
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