Beijing Hyundai Motor Company (BHMC), a 50-50 joint venture between Hyundai Motor Company and Beijing Automotive Industry Holding Co. is to build a third factory in China.
A signing ceremony between BHMC and government officials was held at the Kunlun Hotel in Beijing last week.
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The third factory will increase Hyundai’s total production in China to 1m units from the current 600,000 units. Construction will begin this October with the target of completion by 2012, Hyundai said. Located at the Beijing industrial development zone in Shunyi District, the new facility will be just 20 km away from BHMC’s No 2 plant.
BHMC sold a total of 570,000 vehicles last year and aims to sell 670,000 units this year. These goals made the construction of a new plant “imperative”, the company said.
Hyundai said it was “well on track” to meet the 2010 sales target of 670,000 vehicles, having already sold 437,000 units from January through August this year.
Hyundai started selling cars in China in 2002 and its cumulative sales reached 2 million units by April of 2010. Hyundai expects a combined 4m units of car sales by 2012 when the third plant is completed.
