Kia 2005 Annual Report Download - page 23

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23
2005 Annual Report
Enhancing Capabilities
With new production lines soon to
roll out in modern facilities in
Slovakia and plant number 2 in
China, we are poised to solidify our
sales in Europe and China.
and w ill not merely be a parts assembly plant.
The Power to Satisfy The Power to Excite
KIA believes that the European market holds a lot of promise for us, and that our compact sportier models will do well in the
market. By late 2006, manufacturing operations will begin in full swing in the Zilina plant located in Slovakia. This plant will
serve as a strategic European production point; we plan to expand our total European sales volume to 700,000 vehicles per
year, of which 300,000 will be locally manufactured in Slovakia plant and the rest 400,000 exported from back home. The
Slovakia plant is an important axis in the global management of KIA Motors -- it will take us to the next level of
competitiveness. By producing an exclusively European model, researched & developed locally in Europe, and selling over
300,000 vehicles locally per year, we will strengthen our presence in the market. The Slovakia plant will commence
production initially with a capacity of 200,000 units in 2006 and expand its production scale to 300,000 by 2010. The plant
will operate comprehensive manufacturing activities, and will not merely be a parts assembly plant. Its manufacturing
capabilities will including press, chassis, painting, assembly and engine factories.
Since 2005 KIA Motors has been actively engaged in setting up a second plant in China, which is slated to be done by the
end of 2007. The Dongfeng Yueda Kia plant - dubbed ‘the number 2 China plant’ - will produce 300,000 units annually.
With the number 1 plant in China, our total Chinese production will rise nearly half a million (430,000) units annually. Our
Chinese plants will produce sturdy economical cars that can live up to the expectations of the Chinese driver. Localizing
production will help us not only in terms of cost, but in better understanding the needs of the Chinese driver. The number 2
China plant is a 1,485,000 square meter site, 3.5km south east of the number 1 plant. land leveling works for the number 2
China plant were completed in 2005, and cars will be ready to roll off assembly lines in late 2007.