Kia To Temporarily Suspend U.S. Plant image

South Korean carmaker Kia Motors said on Monday that it would suspend production at its U.S. plant on Monday and Tuesday following parts supply disruption.

A Korean media report said that parts supply to the auto maker had been disrupted by a fire at a plant in Georgia run by Daehan Solution, which provides parts to Kia.

In the release, West Point City Manager Ed Moon said that when he arrived on the scene there were approximately 50 firefighters and a dozen fire trucks in action.

The fire was being fought in a defensive mode.

Daehan Solution declined to comment.

Kia Motors Manufacturing Georgia, or KMMG makes the mid-size Optima sedan and the Sorento sport-utility vehicle. It also constructs the Santa Fe SUV for sister company Hyundai Motor Co. (005380.SE), the spokesman explained.

Ahn Se-hwan, an analyst at IBK Securities, said the closure could lead to short-term production disruptions for the Santa Fe and Sorento.

Shares in Kia Motors were down 1.9 percent and Hyundai Motor was down 0.7 percent in a wider market that was up 0.3 percent as of 0312 GMT.

Kia, one of the fastest growing carmakers in the United States, saw its monthly sales jump 37 percent to a new record high in February from a year earlier.