Hyundai opens its fourth plant in China

Hyundai Motor Company has opened its fourth manufacturing plant in China in the strategically-important city of Cangzhou in north eastern China. The new plant, Beijing Hyundai Motor Company Cangzhou Branch, has an annual capacity of 300,000 units.

At the plant’s opening, Hyundai Motor Chairman Chung Mong-Koo looked ahead to a 10 million cumulative sales target for the company in China, declaring a new vision and greater resolve for Hyundai in the country. Chairman Chung said, “Completion of our Cangzhou Plant is the foundation that enables Hyundai Motor to make a new leap forward in China. Together, Hyundai Motor and Kia Motors can now produce up to 2.4 million cars annually in China with plants in operation at eight strategic Chinese sites.”

The opening of the Cangzhou manufacturing plant coincides with Hyundai Motor’s 14^th year of operation in China after it started exporting automobiles as Bejing Hyundai Motor Company (BHMC) on October 18, 2002. Recording exponential growth every year, BHMC achieved cumulative sales of eight million units in August 2016.

‘New Plant, New Model and New Strategy’ initiative

With its newest plant in China, Hyundai aims to seize the initiative in the incrementally-competitive Chinese market with its ‘New Plant, New Model and New Strategy’ initiative. The Cangzhou Plant begins operations just four years after Hyundai Motor’s third plant opened in Beijing in 2012. The new plant’s competitive edge lies in its strategic location –  it is located only 200km southeast of Beijing, aligned with existing parts suppliers and Tianjin Port, Hyundai Motor’s logistics base.

Built on a 1.92 million square metre site, with a floor space of 250,000 square metres, Cangzhou Plant is fully equipped with press, body, paint and assembly lines, in addition to an engine plant. The facility’s initial capacity of 200,000 units will manufacture strategically important small cars. It will expand to its maximum capacity of 300,000 units by 2018.

The environmentally-friendly plant uses the latest automation facilities in press, body, paint and assembly, as part of a flexible production system to ensure maximum efficiency and capacity utilization. In particular, the body line features a 100% fully-automated system that utilizes 299 robots. It will also implement a comprehensive recycling system, including recycling gas emissions, water and waste.

Verna Yuena sedan first to roll out from new plant

At the Cangzhou Plant opening ceremony, Hyundai Motor unveiled the Verna Yuena, the first model to be produced at the new plant. The Verna Yuena is a strategic model designed after receiving considerable feedback from Chinese customers.

The urban family sedan, which competes in a price-sensitive sector, was first shown as a concept at the 2016 Beijing Motor Show. Its highlights include a refined design, best-in-class greatest interior space, plus the latest safety and convenience features.

The Cangzhou Plant will produce the new model with a choice of two engines – a 1.6-litre, 120ps unit and a 1.4-litre with 100ps.