Hyundai Says Third Chinese Plant Still in Doubt

Following reports that the company is now planning to build a third plant in China to cope with growing demand, Hyundai today denied rumors, saying that no decision has been made until now. However, a company official still left room for speculation, according to a report by Reuters.

"Nothing has been decided," the Hyundai representative was quoted as saying without denying that the company is indeed looking to build a third plant in China.

A report issued a few days ago by EDaily said the South Korean manufacturer is experiencing an impressive growth in China, a country in which Hyundai's small displacement models achieve increasing market share. Supported by the government stimulus plans, Hyundai already sold 257,003 cars in the first half of the year with the help of its local joint ventures.

Hyundai currently builds up to 600,000 cars per year in China with the help of a joint venture with BAIC. The alliance holds two plants, each with a capacity of 300,000 vehicles a year.

"Hyundai will build its third factory with an initial annual capacity of 200,000 vehicles, and later expand the capacity to 300,000 vehicles," EDaily quoted the source as saying.

Details are, as you can see from today's piece of news, still uncertain. Nevertheless, it seems like Hyundai is indeed preparing the papers for a third plant in the country, as some voices are hinting that it has already started negotiating with a number of Chinese manufacturers on such a project. Rumors are also claiming that Hyundai might purchase an ailing carmaker in China and build cars locally using its production facilities.