Beijing Hyundai Motor Company, Hyundai Motor Company’s 50-50 joint venture with Beijing Automotive Industry Holding Co., will build two new plants in China to cater to the surging demand for its cars in the country.
The JV already has three plants operational and will add two more plants next year. The fourth plant will be built in Cangzhou, Hebei province, and turn operational in the second half of 2016, and the fifth plant will be built in Chongqing, and will churn out cars from the following year. Both plants individually will have an annual production capacity of 300,000 units.
All plants combined, the JV will be capable of producing 1.65 million cars per year in China.
More information is available in the press release below.
Hyundai Motor to Build Fourth, Fifth Plants in China – Press Release
- Each Plant to have annual production capacity of 300,000 units
- New plants will increase Beijing Hyundai Motor Co.’s capacity to 1.65 million units per year by 2018
December 30, 2014 – Beijing Hyundai Motor Company (BHMC), a 50-50 joint venture between Hyundai Motor Company and Beijing Automotive Industry Holding Co., today said it would begin building its fourth and fifth plants in China next year to respond to surging demands in the world’s largest automobile market.
BHMC will build its fourth plant in Cangzhou, Hebei province, and its fifth plant in Chongqing, with an annual production capacity of 300,000 units per plant. With the completion of the two plants by 2018, BHMC will have the capability to produce up to 1.65 million cars per year in China.
BHMC plans to open the fourth plant with an initial annual capacity of 200,000 units in the second half of 2016, and later add capacity to reach the expected 300,000 units per year. The plant in Hebei will be built on a 2.095 million square meter site with a floor space of 221,000 square meter, featuring vehicle production facilities such as stamping, welding, painting, assembly and module lines.
Construction of its fifth plant in Chongqing will begin in the third quarter of 2015 and once completed, it will also have an annual capacity of 300,000 units. Built on a 2 million square meter site, the plant will have 274,000 square meter of floor space, featuring complete vehicle and engine production facilities. Small and mid-size models specifically designed for the Chinese market will be rolled out from the plant, starting from the first half of 2017.
Hyundai established BHMC in 2002, opening its first plant in China. It added a second factory in 2008, doubling its annual production capacity to 600,000 units. In 2012, with the addition of the third plant, the total annual production capacity reached more than 1 million units per year. The new plants are expected to further reinforce the company’s presence as a leading automaker in the Chinese market.