Tuesday, January 28th, 2014
SEOUL, KOREA - Hyundai Mobis, Korea's largest auto parts company, will this year build or expand plants in China and India, as well as in Korea. In addition, it would also build from scratch a third module plant near the Kia Motors plant in Yancheng in northeastern Jiangsu Province, followed by two more plants in India and an expansion project in its Gwangju plant at home.
The reason Hyundai Mobis is actively investing in global capacity expansion has to do with the fact that Hyundai Motor and Kia Motors are rapidly increasing their automobile output all across the world and the company tries to cut cost by exploiting scale economies.
According to company sources on January 27, the Hyundai Automotive Group company has already begun operations of its module plant in Jiangsu Province from the 21st. The plant is capable of producing chassis modules and cockpit modules for 300,000 cars a year. In the summer of this year, the company plans to build three more plants including Gwangju and two locations in India.
Once the expansion projects are completed, the company will have a total of 16 global production bases all around the world. In addition to production facilities, it will also build five more logistical warehouses from current ten locations. Of these, three locations will be built in China, including two in Xi'an and surrounding areas and one in Wuhan. Other two locations will be Hungary and Mexico.