Hyundai set to build $400m car plant in RI<\/p>\n
SEOUL (AFP): South Korea's largest automaker, Hyundai Motor
\nCo., said yesterday it would build a 400-million-dollar auto
\njoint venture in Indonesia to strengthen its foray into the local
\nmarket.<\/p>\n
The new plant to be built jointly with a local conglomerate
\nBimantara Citra Group, will be capable of producing 50,000 mid-
\nsized passenger cars annually from the first half of 1999, a
\nHyundai spokesman said.<\/p>\n
The two partners recently signed a contract which calls for a
\n50 percent equity stake each in the project, he said.<\/p>\n
"The new project comes in line with Indonesia's growing
\npassenger car demand and the country's policy to increase the
\nsales of locally-produced cars, rather than imports," spokesman
\nMin Kyung-Hwan said.<\/p>\n
A subsidiary of the Bimantara Citra Group is currently
\nimporting knock-down kits of Hyundai's compact Accent and Elantra
\nmodels. In 1996, Hyundai's kit exports to the group totaled some
\n2,400 units, the spokesman said.<\/p>\n
Hyundai predicted the Indonesian auto market would grow 20
\npercent annually to reach 675,000 units by 2000 from 384,449 in
\n1995.<\/p>\n
Intensifying competition among foreign players, another South
\nKorean firm, Kia Motors Corp. is also building a joint venture in
\nIndonesia to turn out 120,000 automobiles a year from September,
\n1998.<\/p>\n
Hyundai, aiming to boost its offshore production to 500,000
\nincluding knock-down imports by 2000 from the current 80,000, is
\nnow engaged in expansion projects in India, Malaysia and Taiwan.<\/p>\n
The company has total annual production capacity of 1.65
\nmillion vehicles at home. Domestic output will be raised to 1.9
\nmillion by 2000, Hyundai said.<\/p>",
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