Hyundai plans third plant in China: report

Hyundai Motor Co, South Korea's top carmaker, seems to be on a growth path amid the recession. It reportedly plans to set up a third production plant in China to meet the growing demand for its vehicles.

Hyundai is in talks with Chinese companies to build a factory in the country, according to EDaily, a Seoul-based internet news provider, quoting an unnamed industry source. It said Hyundai was also considering buying a Chinese carmaker, as the Chinese government hoped it would make an acquisition amid a shake-up in China's auto industry.

"Hyundai will build its third factory with an initial annual capacity of 200,000 vehicles, and later expand the capacity to 300,000 vehicles," EDaily quoted the source as saying. The company was reviewing a plan to start construction next year, with completion scheduled for 2012, it added. Hyundai officials declined to immediately comment on the report.

Beijing Hyundai, a 50-50 joint venture between Hyundai and Beijing Automotive Industry Holdings, has two plants in China with a combined capacity of 600,000 units. Hyundai recently raised its 2009 target for sales in China for a second time because of stimulus measures by Chinese government to boost demand, and as the company plans to launch new models.

Indian capacity to be hiked as sales jump
Meanwhile its Indian arm, Hyundai Motor India Ltd, will increase its manufacturing capacity by 20 per cent and hire 1,000 people this month at its two plants in Chennai, the company announced.

The hiring will push the company's total workforce up to above 12,000. Last month, Hyundai increased its output by about 25 per cent and the workforce by over 1,000 employees at the plants.