Hyundai signs agreement to establish third plant in China

Hyundai Motor Company, or BHMC, an equal stake joint venture between Hyundai Motor Company and Beijing Automotive Industry Holding Company, has announced that it would begin building a third factory in China.

The third factory will increase Hyundai's total production in China to one million units from the current 600,000 units. Construction will begin in October 2010 with the target of completion by 2012.

Located at the Beijing industrial development zone in Shunyi District, the new facility will be just 20km away from BHMC's second plant. Hyundai expects a combined 4 million units of car sales by 2012 when the third plant is completed.

Noh Jae-Man, president of BHMC, said: "By using the latest technology, the new manufacturing plant will feature more advanced facilities than the second plant, enabling us to build a world-class plant that meets our highest standards for product quality and environmental protection."