TOsustain its sales momentum in the Chinese market, KIA Motors Corporation has announcedplans to build a third manufacturing plant in China.The signing ceremony for the investment MOU (Memorandum of Understanding) to build the new Dongfeng Yueda Kia Plant three was held in Yancheng, Jiangsu Province recently.According to Kia, upon completion of the plant, which would be able to produce 300,000 units annually, 'Kia will have increased its production capacity in China from the current 430,000 units at its existing two plants to a total of 730,000 units per year.Representatives of Kia, Mr. Chung said: 'Kia is one of the fastest growing automotive companies in the Chinese market and this would not be possible without the continuous support and cooperation from the governments and citizens of Jiangsu and Yancheng.'With our third China plant, which we will begin constructing at the end of next year, Kia will be well-positioned to provide its growing Chinese customer base with stylish, safe, reliable and high-quality vehicles while also helping to further develop the local economy and improve people's lifestyles,' said Chung.The new plant will be located five kilometres from Kia's second plant in Yancheng's Economic and Technology Development Zone. The close proximity to the existing facility will enable Kia to utilise the established infrastructure and to create synergies between the plants.Kia plans to begin construction of the new plant at the end of next year and anticipates completion of the facility and the rollout of production models in the second half of 2014.Strategic models developed especially for the Chinese market to reflect local needs and preferences will be built at the new plant, but the 'specific models have yet to be finalised as Kia continues to study the rapidly transforming Chinese automobile market.'Already, the city of Yanchang has promised to offer 1,500,000 m2 of land to Kia and will also provide incentives such as preferential tax rates.Sales of locally manufactured Kia vehicles reached 101,427 units in 2007, and the company posted a 40 per cent year-on-year increase in 2008, selling 142,008 units after the second plant was put into full operation.In 2009, Kia recordeda 70 per cent year-on-year increase (241,386 units sold). Last year, Kia posted further strong double-digit growth, reaching 333,028 vehicles sold for 38 per cent year-on-year growth.As at October this year, sales of locally produced vehicles recorded 341,682 units due to the increased popularity of mid-size K5 sedan (known as Optima in markets outside of Korea and China) and the sub-compact K2 (a localised version of the all-new Rio).
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