Hyundai to invest 740 mln more dollars in China

Hyundai Motors, the biggest automaker in the Republic of Korea (ROK), in a recent announcement said that it would invest an additional 740 million US dollars by 2007 in its China-based joint ventures to boost production in the lucrative market, local media reported.

According to the Beijing News, most of the additional investment, mainly profits from Hyundai's local joint ventures, will be put in Beijing Hyundai, Hyundai's biggest joint venture inChina.

The 50-50 venture clinched between Hyundai and Beijing Automobile Industry Holdings sold 52,000 cars in 2003 with a business turnover of 1 billion dollars and a profit of 250 millions.

According to the newspaper, the investment increase is expected to boost Beijing Hyundai's production capacity from the present 150,000 to 600,000 in 2007 as the joint venture prepares to set up another auto plant.

DYK (Dongfeng-Yueda-Kia) Motors, a joint venture set up by Hyundai's subsidiary Kia Motors, will also be on the list of beneficiaries.

Kia itself also plans to set up another auto plant by investing 600 million dollars by 2007 to raise its production capacity from the current 130,000 to 400,000, the paper said.

Source: Xinhua