Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Kia Motors Expands With New Factory

Kia Motors Expands With New Factory

Kia Motors is looking to further boost its worldwide growth, with the announcement of a new US$1 billion car factory to be built in Mexico.

Construction of the new Mexican plant, which will be able to produce 300,000 vehicles annually, begins at the end of this month (September) and it is expected to open in the first half of 2016.

When completed, it will bring the combined production capacity of Kia plants around the world up to a total of 3.37 million vehicles per year.

Kia expects the Mexican plant to play a major role in alleviating current global supply issues thanks to its strategic geographic location, especially its proximity to the USA, where supply pressures have resulted from the dramatic growth of Kia in that market.

It will also help to boost Kia in other markets around the world, including New Zealand, freeing up supply from Kia’s domestic plants to address supply issues to a number of regions.

“It’s no secret that supply constraints have held us back from achieving our true potential in New Zealand in recent years and this announcement will enable us to maximise plans for future growth in our market,” says Todd McDonald, General Manager of Kia Motors New Zealand.

The new Mexican plant will be the second for Kia on the American continent, following the construction of a large factory in Georgia in the USA to build Sorento and Optima models. Kia also has overseas factories in Europe (Slovakia) and in China, in addition to major manufacturing facilities in Korea.

The selection of Mexico is a strategic one, as Kia has been evaluating various options for entering new overseas markets to secure future growth for the brand. With its strong growth forecasts for new vehicle demand, Mexico was chosen as the site for Kia’s next overseas plant given that it is one of the few remaining major markets of the world in which Kia does not have a sales presence.

The new state-of-the-art manufacturing plant will be built on a 500 hectare site in Monterrey, in the northeastern state of Nuevo León. This highly automated plant will a produce a range of yet-to-be confirmed compact models.

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news