Hyundai seems determined to boost its sales in China and as a result, the South Korean manufacturer will build not one, but two factories in the region. According to Reuters, Hyundai wants to meet the request of China’s central government, which wants the company to build a new plant in the northeastern Hebei province in as part of a development plant spanning Beijing, Tianjin and Hebei.
Hyundai already has three factories located in Beijing and back in March the company signed a preliminary agreement to build a new plant in the southwestern city of Chongqing as part of its plan to expand in western China.
According to inside sources, Hyundai is planning to invest $1 billion in the Chingqing factory and will open it in 2016. The second factory involves the joint venture with Beijing Automotive Industry Holding and aims to open a factory in the Hebei city of Hanghua in 2016.
What’s more interesting is that Hyundai decision to invest in China comes in a period when foreign direct investments in the region fell to a low not seen in at least two and a half years. Asked about the new factories in China, a Hyundai spokesman said that nothing was decided yet. [source: Reuters.com]