Hyundai Chairman Denies Rumor About Hyundai New Plant in the US image

Hyundai Chairman Chung Mong-koo said the automaker does not plan to immediately build a plant in the US.

“We have no plan (for a new U.S. factory) for now,” said Chung Mong-koo at Seoul’s Gimpo airport before leaving for the United States.

The rumors about Hyundai building a plant in the US sparked last week after Chung said that the automaker “will look into whether there are opportunities” to expand production into other markets. During his visit in the US, which takes place at the same time with South Korean President Park Geun-hye’s U.S. trip, the chairman will visit Hyundai and Kia’s facilities in Georgia and Alabama.

Today, May 6th, another Hyundai executive, Kim Yong-hwan, confirmed that the automaker does not plan to build a new facility in the US, as the addition of a third shift last year at the company’s plant in Alabama eased capacity constraints in the States.

“We are closely watching the U.S. market situation … but we are not having an in-depth consideration of a new plant there,” he told Reuters.

Analysts believe that either Hyundai or Kia will most likely build a new facility in the US to deal with capacity shortages which have affected the companies’ sales and market share in 2012.

Source: Reuters