Kia Inaugurates Its Second Production Plant In China

In conjunction with its joint venture Dongfeng Yueda Kia (DYK) Motors, Kia officially opened its second manufacturing facility in China at a ceremony in Jiangsu Province on Saturday. Built in Yancheng City, about 250 miles or 400 km north of Shanghai, Kia’s second Chinese plant is 2miles or 3.5 km away from the company’s first factory. When in full operation, the facility will have an annual production capacity of 300,000, bringing total production capacity in China to 430,000 units. -Continued after the jump

In addition to the 300,000-unit annual capacity Slovakia plant which began production in December of 2006, Kia’s overseas production capacity will be further boosted to 1,030,000 units annually with the completion of Kia’s first North American plant in Georgia, U.S. in the second half of 2009.

The new Chinese plant began producing the Cerato sedan in October, with the 5-door hatchback version added earlier this month. Approximately 7,000 units of the Cerato have been produced as of the end of November. Kia is also planning to introduce a new model for production at the new plant in 2009 and is currently assessing Chinese market trends and conditions before finalizing the next model.

Speaking at the ceremony, Kia Motors Chairman & CEO, Mong-Koo Chung said, “Along with our Slovakia Plant currently in operation and the U.S. plant in Georgia scheduled for completion in 2009, this second plant in China plays a significant role in our ‘glocalization’ strategy of thinking globally and acting locally to bring ultimate satisfaction to our valued customers around the world.”

“Today also signifies a very important milestone in the evolution of the Kia brand in the increasingly competitive Chinese market as Kia Motors strives to be among the top makers in China market by the end of the decade,” he added.