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Hyundai to invest US$740m in China JVs
(Xinhua)
Updated: 2004-06-18 15:44
Hyundai Motors, the biggest automaker in the Republic of Korea (ROK), in a recent announcement said that it would invest an additional US$740 million by 2007 in its China-based joint ventures to boost production in the lucrative market.
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 in China.
The 50-50 venture clinched between Hyundai and Beijing Automobile Industry Holdings sold 52,000 cars in 2003 with a business turnover of US$1 billion and a profit of 250 millions.
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 US$600 million by 2007 to raise its production capacity from the current 130,000 to 400,000.
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