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Kia plans to build new engine plant in Europe

Kia Motors to invest 100 million euros to build new engine plant in Slovakia.

Kia announced it would invest 100 million Euros to build a new engine production facility in Slovakia (Europe).

The company expects to launch the operations at its brand-new engine production plant in 2011 and reach full annual production capacity of 150.000 units by the end of 2012.

Kia did not disclose any information regarding the engines it plans to produce at the plant, but it is believed that the company will build highly advanced four-cylinder powerplants for its next-generation vehicles.

The new production facility will also provide engines for a plant run by Kia’s sister firm Hyundai in the neighbouring Czech Republic, which is located only 40 miles from the Kia’s Slovak factory.

The investment is said to add 270 new jobs to the 2.700 people already working at existing Kia plant.

According to President and CEO of Kia Motors Slovakia, this 100 million euros investment will increase Kia’s overall annual production capacity to 450.000 engines, which confirms the brand’s strategy to develop Kia’s activities in Slovakia in a long term.

Kia has been operating a 1 billion euro automobile manufacturing plant in Slovakia since December 2006.

The plant has an annual production capacity of 300.000 vehicles and currently builds three different vehicles; two for Kia and one for Hyundai.

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The automaker uses same production lines to build the all-new Sportage and Hyundai ix35 (known as Tucson in the USA) crossovers, both destined for European market. It also manufactures three variants of popular cee’d: the 5-door cee’d, cee’d wagon and 3-door cee’d).

kia-sportage-production-plant-2011.jpg

As already mentioned, Kia’s first-ever European production plant was opened in December 2006 with the launch of the brand-new cee’d hatchback. Already in its first year of full production, the plant produced 140.000 new vehicles, while production surged to record-high 201.000 units in the following year.

Due to lower demand for new vehicles in Europe, production decreased to 150.000 units in 2009. This year, Kia Motors expects to boost production at the plant by 40 percent as demand for the 2011 Sportage and Tucson models is expected to increase.

4 thoughts on “Kia plans to build new engine plant in Europe

  1. 40 Miles is still too far, they need to build the engines on site to cut cost.

  2. will be build to furnish Hyundai shop in Czech republic. and Kia shop in SlovaKia nearby Czech.

  3. and they write 40 miles from Nosovice Czech (hyundai plant) and Zilina (Kia Plant) in Slovakia
    if the engine shop is in between i don’t see any distance problem!

  4. I just think we should cut costs smartly so that we can cram even more into a car. That Rio can grow into a Golf/MINI you know.

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