Kia to invest US$ 150 million in Nuevo Leon this year
Hyundai Motor Co. and its affiliate Kia Motors Corp. will invest US$ 4.28 billion in facilities this year, up more than 5% from 2016. Out of the investment, US$ 3.25 billion will end up at Korean plants, while just US$ 983.9 million will go to facilities overseas including the plant Kia opened last year in Pesqueria, Nuevo Leon.
According to the investment plan for facilities revealed by Korean media, US$ 2.93 billion will be destined for Hyundai Motor and US$ 1.35 billion for Kia Motors. The figure for Hyundai Motor increased 18.8% compared to last year, while the figure for Kia Motors decreased 14.5%.
The investments in Kia Motors’ facilities dropped due to the completion of its plant in Mexico. Kia Motors made a US$ 592.58 million investment in the Mexican plant last year alone, but the figure decreased to US$ 149.91 million this year.
Since the company has already made most of its initial large-scale investments in facilities at the Mexican plant, it will focus on upgrades for this year.
The total investments in domestic facilities, including the expansion of production lines, will be US$ 3.25 billion, US$ 2.27 billion for Hyundai Motor and US$ 973.35 million for Kia Motors.
Overseas Hyundai Motor and Kia Motors will invest US$ 658.14 million and US$ 376.12 million, respectively. Most of their production bases overseas have already surpassed 100% of operating rates, making inevitable for them to expand their facilities.
The operating rate of Hyundai Motor Manufacturing Alabama (HMMA), the company’s production base in North America, reached 102.4% last year, producing 379,020 cars which exceeded its scheduled annual production capacity of 370,000 units.
Among Hyundai Motor’s production bases, only two plants in Korea and Brazil had less than 100% of operating rates, with 95.4% at the Asian facility and 89.9% for the latter.
The situation is similar in Kia Motors. The average operating rate of Kia Motors’ global production facilities is overloaded with 100.5%, the Mexican plant alone at 105.1%.