Hyundai Motor Company (HMC) has established a joint venture company with Beijing Automotive to build a car plant in China.
Vice Chairman B.J.Park and President D.J.Kim signed a memorandum of understanding with the President of Beijing Automotive, Mr. C.H.An at a ceremony in Seoul.
HMC will put into US$250 million to build 50-50 joint venture factory for passenger cars, to be called Beijing-Hyundai Motor Company in China. Production is expected to commence in October of this year.
The factory will have an initial capacity of 100,000 units, expanding to 200,000 units per year by 2005. Production will begin with Hyundai’s EF Sonata model followed by Elantra XD.
Hyundai Motor Company and Beijing Automotive expect the Chinese auto market to expand dramatically following China’s entry into the World Trade Organisation.