Hyundai Expands Production With New Plant In China

Hyundai Expands Production With New Plant In China

Hyundai Motor Company has opened its 4th manufacturing plant in China in the city of Cangzhou in northeastern China. The new plant, Beijing Hyundai Motor Company Cangzhou Branch, has an annual production capacity of 300,000 units, and provides about 6,000 jobs to Cangzhou.

At the plant’s opening, Hyundai Motor Chairman Chung Mong-Koo looked ahead to a 10 million cumulative sales target for the company in China, declaring a new vision and greater resolve for Hyundai Motor in the country. Chairman Chung said, “Completion of our Cangzhou Plant is the foundation that enables Hyundai Motor to make a new leap forward in China. Together, Hyundai Motor and Kia Motors can now produce up to 2.4 million cars annually in China with plants in operation at eight strategic Chinese sites.”

Hyundai CangzhouThe opening of the Cangzhou manufacturing plant coincides with Hyundai Motor’s 14th year of operation in China after it started exporting automobiles as Bejing Hyundai Motor Company (BHMC) on October 18, 2002. BHMC achieved cumulative sales of 8 million units in August 2016.

The Cangzhou Plant starts operations just 4 years after Hyundai Motor’s third plant opened in Beijing in 2012. Situated strategically near Beijing (about 200 km), the plant is within reach of existing parts suppliers and Tianjin Port, Hyundai Motor’s logistics base.

The plant has a floor space of 250,000 square meters which is built on a 1.92 million square meter plot and is fully equipped with the latest press, body, paint and assembly lines, as well as an engine plant. The body line features a 100% fully-automated system that utilizes 299 robots. Further, Cangzhou Plant will implement a comprehensive recycling system, including recycling gas emissions, water and waste. The facility’s initial annual capacity of 200,000 units will manufacture strategically important small cars; production capacity will be expanded to its maximum of 300,000 units by 2018.

Beijing Hyundai Motor Company Cangzhou China PlantAt the plant opening ceremony, Hyundai Motor also unveiled a new China-specific Verna (Accent) model, the first model to be produced at this new plant. This Verna is a strategic model designed based on the needs of Chinese customers for a smart urban family sedan in a price-sensitive segment. The new model will have 2 engine choices – a 1.6-liter with 120 PS and a 1.4-liter with 100 PS. It will also be equipped with the latest safety technology, including VSM (Vehicle Stability Management), TPMS (Tire Pressure Monitoring System) and also latest convenience features like the band-type smart key (‘H-Band’), smart trunk, heated front row seats, sunroof, and Apple CarPlay and Baidu CarLife support.

A 5th Beijing Hyundai plant in Chongqing is expected to begin operations in 2017 and when it reaches its targeted capacity of 300,000, it will increase Hyundai’s annual output to 2.7 million vehicles.

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