DAILY - UPDATED
Kia to build new China plant by 2014
On the heels of record October sales, Kia reveals plans to build new manufacturing plant in China!
In order to meet fast growing demand for its latest vehicles such as Kia K2 (known as Kia Rio in USA) and Kia K5 (Chinese version of Kia Optima sedan), the South Korean second largest carmaker announced today it aims to build already its third manufacturing plant in China.
Kia’s new China plant will be build in the northeastern city of Yancheng and will be able to produce up to 300.000 new vehicles annually. Once completed, Kia will have increased its production capacity in China from the current 430.000 units at its existing two plants to a total of 730.000 units each year.
The third plant will be built just 5 kilometers from one of the existing Kia plants, which is expected to boost efficiency since the two can share production-related infrastructure.
Kia plans to begin construction of the new China plant at the end of next year and anticipates completion of the facility in 2014, while first models are expected to roll out during the second half of 2014.
Kia has not revealed which models it plans to build at its new plant, but said the plant would roll-out strategic models developed especially for the Chinese market.
Kia sales in China
Kia is very-well on track to meet its 2011 sales target of 430.000 units in China. So far this year, sales of Kia’s vehicles recorded 341.682 units thanks to stellar performance of new Kia K2 sub-compact car and K5 mid-size sedan.
During the month of September, Kia enjoyed its highest-ever monthly sales in China with 43.508 vehicles delivered to Chinese consumers ( 4.001 K5 sedans and 10.478 K2 sub-compact cars). Higher sales resulted in increased market share which stood at 3.5 percent through September making the brand a top 10 auto-maker in China. [Source: Kia]