Beijing Hyundai to break ground on 3rd plant in Sept

Shanghai, July 26 (Gasgoo.com) South Korean automaker Hyundai Motor announced yesterday that the company and its Chinese partner Beijing Auto will break ground on their joint venture's third plant in September, the Chosun Ilbo reported.

The new plant will be built at the Beijing River Industrial Development Zone in Shunyi district, Beijing. Hyundai Motor has finished final negotiations with the Beijing city government and all that remains is to sign the official agreement, said a company executive.

Beijing Hyundai Motor Co., a joint venture in China between Beijing Auto and Hyundai Motor, currently has two plants in Shunyi district that can produce a combined 600,000 vehicles a year. The third plant is expected to boost Beijing Hyundai's capacity to more than 900,000 vehicles.

Hyundai plans to build some 150,000 Avante compacts a year at the new plant from May 2012, and is also considering producing its new Grandeur sedan, which is to be released in Korea late this year, at the plant from late 2012 for the Chinese market.

In the first half of this year, Beijing Hyundai sold 329,000 vehicles, up 27.9% from a year earlier. In June alone, it sold 54,083 vehicles, up 14.2% year on year. The company aims to sell about 730,000 cars this year.