Hyundai Motor is spending KRW300bn (US$270m) on an upgrade of its second factory in Ulsan, the automaker told local media.
The project is scheduled for completion on 17 September and is the second major reconstruction of a Hyundai factory this year, following the rebuilding of the first factory in Ulsan last February on which Hyundai spent KRW220bn, the Korea Herald reported.
All production stages including body and paint shops are being redeveloped, the company said.
The plant builds four models – SanteFe and Tucson SUVs, Avante compact sedan and i40 wagon at Ulsan #2 and production will restart after the expansion, intended to improve productivity, though no new models will be added initially.
A height adjustable conveyer belt system will be installed to enhance convenience for workers – a first for a Hyundai plant.
A robot will be added in the paint shop to improve efficiency.
The factory opened in 1986 and has since assembled the Pony, Stella, Scoupe, Sonata and Equus.
"Alongside improving competitiveness, we also hope the reconstruction of the second factory will contribute to the regional economy," Hyundai Motor said in a statement.
About 100 companies and up to 5,000 workers daily are working on the project.
A Hyundai Motor spokesman told the Korea Herald there were no immediate plans to upgrade other factories.