Kia Motors Corporation and its partner SOK Group of Russia have announced that they are on track to commence production of the C-segment Spectra sedan on a complete knock-down (CKD) basis in the beginning of August 2005.

The 11,000 sq. meter assembly factory operated by Izh-Avto, a subsidiary of SOK Group, is located in the city of Izh-Avto, Russia. The Spectra project, which will consist of full-scale body, paint and assembly operations, represents Kia's largest CKD assembly operation in Russia.

Installation of the paint shop is now underway. The facility has an annual capacity of 220,000 units and includes a newly designed PT/ED line, plastic line, and a modernized primer and top coat line. The body shop equipment provided by Kia Motors is currently arriving at Izh-Avto site.

Kia Motors says it is providing full technical assistance to the Russian partner as well as training of its personnel. In total, more than 50 Izh-Avto specialists are scheduled to receive training at Kia's facilities in Korea before the start of mass production.
Izh-Avto will implement Kia engineering standards for manufacturing of the vehicles. In June 2005, Kia Motors engineering and quality control specialists as well as related vendors will arrive in Izhevsk to proceed with the pilot production of the Spectra vehicle.

According to the terms of the Technical Collaboration and Licensing Agreement signed in August 2003, the Spectra project calls for total production of 148,000 units between 2005 and 2009.

According to Yong-Hwan Kim, Senior Executive Vice-President and COO of Kia Motors Corporation, "In line with our strategy of 'glocalization,' we are striving to fully meet the needs of Russian customers through localized production of Kia vehicles. The joint projects with SOK Group are a sign of Kia's aggressive policy aimed at attaining a leading share of the Russian automobile market."