Hyundai quadruples engine output in Shandong

BEIJING -- Hyundai Motor Co.'s engine joint venture in eastern China's Shandong province opened a second plant in early July, quadrupling the venture's production capacity to 400,000 engines.

The new plant will start making 1.4- and 1.6-liter Gamma series engines in 2009, says Sang-Dae Han, president of Wia Engine Shangdong Co., a 70-30 joint venture between Hyundai and the Rizhao Port Group, a state-owned port service provider in Shandong.

The engines will be exported to Hyundai's operations in Russia, India and Turkey. They will also be supplied to Dongfeng Yueda Kia Automobile Co. in eastern China's Jiangsu province, says Han.

Dongfeng Yueda Kia is a joint venture between three parties -- Hyundai, Dongfeng Motor Corp. and Jiangsu Yueda Co.

Han says Wia also plans to produce 2.0- liter and 2.4- liter Theta series engines in the new plant to supply Beijing Hyundai Motor Co. and Dongfeng Yueda Kia. But he gives no timetable for the production.

Beijing Hyundai is a joint venture between Hyundai and Beijing Automotive Industry Holdings Corp. (BAIC).

At present, Wia makes 1.4- and 1.6- liter Alpha series engines in its existing plant in Shandong for export to Russia, India and Turkey. Production capacity for the two engines combined is 100,000 units.

In addition to Wia, Hyundai makes 1.4- and 1.6-liter Alpha II series engines as well as the 1.8- and 2.0-liter Beta series engines in the two existing engine plants of Beijing Hyundai.

The Alpha II engines are used to supply the operations of Beijing Hyundai and Yueda Kia.

Hyundai also assembles the 2.7-liter Delta engine in Beijing for Beijing Hyundai with parts imported from Korea.