Hyundai Motor Co., South Korea's top carmaker, said Wednesday it is looking to build two additional factories in China instead of just one, tweaking its original plan in a bid to win the final approval from the Chinese government.
Aside from the production plant to be built in the southwestern city of Chongqing, Hyundai has decided to set up another factory in Cangzhou, northeastern China, according to company officials.
The automaker had originally signed a preliminary agreement to build one factory in Chongqing earlier this year, but the Chinese government has yet to give its final go-ahead, and has instead requested Hyundai to place its new facility close to Beijing, in line with the country's push for integrated development in its northern metropolitan regions.
"We are holding under-the-table negotiations with China's central and provincial governments as well as our joint venture partner, Beijing Automotive Industry Holding Co.," a Hyundai official said, adding that there has been "progress."
Having already built three such plants in the Chinese capital, Hyundai had been looking to expand its foothold in the western regions of the world's No. 2 economy, so its compromise to construct two factories may have been necessary to satisfy both parties, according to industry watchers.
Beginning constructions within this year as planned is "not likely," as Hyundai is still awaiting the final nod from the government, but company officials say the current delay will not interfere with the big picture.
"The initial goal was to start manufacturing vehicles in Chongqing in March 2016, so as long as we get the government approval, we'll be able to complete the factory there in time," another Hyundai official said.
The new plant in Chongqing is expected to raise Hyundai's annual production by 300,000 vehicles. The Beijing factories can currently produce a combined 1.05 million units per year.
Earlier in October, Hyundai sold a total of 90,164 vehicles in China, up 7.9 percent from a year earlier. Cumulative sales in the first ten months of the year advanced 6.8 percent from a year ago to 886,721 units. (Yonhap)
Aside from the production plant to be built in the southwestern city of Chongqing, Hyundai has decided to set up another factory in Cangzhou, northeastern China, according to company officials.
The automaker had originally signed a preliminary agreement to build one factory in Chongqing earlier this year, but the Chinese government has yet to give its final go-ahead, and has instead requested Hyundai to place its new facility close to Beijing, in line with the country's push for integrated development in its northern metropolitan regions.
"We are holding under-the-table negotiations with China's central and provincial governments as well as our joint venture partner, Beijing Automotive Industry Holding Co.," a Hyundai official said, adding that there has been "progress."
Having already built three such plants in the Chinese capital, Hyundai had been looking to expand its foothold in the western regions of the world's No. 2 economy, so its compromise to construct two factories may have been necessary to satisfy both parties, according to industry watchers.
Beginning constructions within this year as planned is "not likely," as Hyundai is still awaiting the final nod from the government, but company officials say the current delay will not interfere with the big picture.
"The initial goal was to start manufacturing vehicles in Chongqing in March 2016, so as long as we get the government approval, we'll be able to complete the factory there in time," another Hyundai official said.
The new plant in Chongqing is expected to raise Hyundai's annual production by 300,000 vehicles. The Beijing factories can currently produce a combined 1.05 million units per year.
Earlier in October, Hyundai sold a total of 90,164 vehicles in China, up 7.9 percent from a year earlier. Cumulative sales in the first ten months of the year advanced 6.8 percent from a year ago to 886,721 units. (Yonhap)
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