Parts maker Hyundai Mobis will launch a transmission-producing corporation in Beijing in March, according to media reports following a board meeting this week.

It is reported that the new venture will make manual gearboxes and provide them to two vehicle making joint-venture operations in China run by Hyundai Motor.

Mobis will reportedly invest US$75 million in building the production facilities with a monthly production capacity of 100,000 units by the first half of 2004. The transmissions will be fitted to Hyundai Avante, EF Sonata and Accent models.

Reports say the company plans to double the capacity to 200,000 units a month by 2006.

The transmissions operation will take the number of Mobis’ Chinese facilities to four. Hyundai Mobis currently has two module plants in Beijing and Ziangsu and a car audio system plant in Shanghai.

Hyundai and its KIA subsidiary plan to manufacture a combined one million units per annum in China by 2010.

Hyundai Mobis has also announced that in 2002 its sales increased 39.5 percent to 4.13 trillion won and ordinary profits grew 39.3 percent to 580 billion won. The company achieved net profits of 400 billion won, up 38.6 percent from the previous year.