Ssangyong plans to start production in China

Shanghai. September 14. (Gasgoo.com) - Ssangyong Motor Co., South Korea's fourth-largest automaker is planning to build its first factory in China after achieving a financial turnaround in its domestic operations, said the company chief.

"We have finished the market assessment with SAIC (Shanghai Automotive Industry Corp), and will proceed to talk about details such as factory site," Choi Hyung-tak, top executive of Ssangyong, told Yonhap News Agency at 2007 Frankfurt International Motor Show.

Choi expected to obtain a local legal person status soon after the Chinese government approves this project. Choi believes it’s crucial for Ssangyong to have an overseas production unit as the company’s domestic market in South Korea is relatively limited.

SsangYong shows its Wz Concept. Photograph: Autoblog.com

The company, in which SAIC holds 51.33 percent stake, announced yesterday that it would raise production capacity by 55 percent at its only assembly plant in South Korea over the next three years. Ssangyong's August sales almost quadrupled from the previous year, the company said.

"We also need to strengthen the technical cooperation with SAIC," Choi added. Under cooperation agreement between SAIC and Ssangyang, SAIC would help Ssangyang upgrade its stereotype as a SUV-maker. There would be approximately 8 new models, including sedans and MPVs, to be added into Ssangyong's lineup by 2010.
 
The company will spend 8 percent of its annual revenue on the expansion plan by 2010, according to an Associated Press report.