According to sources that have knowledge of the plans, South Korea’s Hyundai Motor is mulling the expansion of its manufacturing footprint in China and aims to build not one, but two automotive plants.
One of the people familiar with the proceedings claims the increase is due to China’s government request to also have a Hyundai plant in the northeastern Hebei province – with the factory part of larger development strategy for the Beijing, Tianjin and Hebei regions.
Back in March, Hyundai – which already produces cars in three facilities in Beijing – signed a deal with the Chinese authorities to begin the construction of a factory in the southwestern city of Chongqing that would allow the automaker’s expansion towards the western part of the country.
The latter $1 billion factory was planned for an early 2016 production start, but as the central government permission has not been granted yet, Hyundai will probably postpone it to a later date, said the other source.
Both people pointed out that following China’s legislators request, the new factory that would be built in the Hebei city of Huanghua should start production in 2016, thus beating the deadline for the Chongqing facility.