Kia Building Third Plant in China

Kia will build its third factory in China in 2012 due to strong sales in the Chinese market and to further strengthen its business in Asia. The new plant will have a 300,000 vehicle capacity and be ready in 2014. The new factory will boost Kia's production capacity in China to 730,000 cars per year. 

Kia signed a letter of understanding with the Chinese government to build the new facility in Yancheng, China. Technically it will be a factory for Dongfeng Yueda Kia, a 50/50 joint operation between Kia and China's Dong Feng automaker. 

The new plant is located 5km from another Kia factory in China to allow them to share infrastructure. Ground breaking will be at the end of 2012. 

Kia's sales in China have tripled in the last four years. It sold 101,427 cars in China in 2007, and it has already sold 341,682 cars in China through October with two months of sales still to be recorded. Kia controls 3.5% of the Chinese car market. Combined with sibling Hyundai sells over a million cars per year in China making them the third largest car company in China behind Volkswagen and General Motors.