Kia opens plant in China

Kia opens plant in China

SEOUL (AFP): South Korea's ailing auto maker, Kia Group, yesterday became the country's first car manufacturer in China as it opened a joint venture plant in Yancheng, Kia officials said.

The joint venture plant between Kia and China's Yeufa Motors would produce 5,000 units of Kia's compact model Pride by the end of this year, a Kia spokesman said.

Production would be boosted to 25,000 units in 1998 and 50,000 in 1999, he said.

The joint venture agreed to invest US$15 million in the project, with Kia controlling a 30 percent stake. Kia will also earn US$3 million for transferring its technology.

Kia, South Korea's third largest auto maker, faced a financial crisis which started in July after creditor banks refused to extend lifeline loans in disputes with its management.