MercoPress. South Atlantic News Agency

Hyundai plans to produce 150.00 vehicles at its first plant in Brazil

Sonata IX 35 are fast selling models from Korea’s manufacturer

Hyundai Motor Company, South Korea’s largest automaker is constructing its seventh overseas plant in Piracicaba, Sao Paulo state, Brazil to actively respond to soaring demand in one of the world’s fastest growing markets and to bring its manufacturing presence in so-called BRIC countries full circle.

“Brazil is growing into one of the worlds biggest economic powers through stable economic growth and increased foreign investment, and the state of Sao Paulo is the heart of Brazils economy,” Jong-Woon Shin, Hyundai Motors Vice Chairman, said during his welcome remarks. “Hyundai Motor, together with its suppliers, will create new jobs and contribute to Brazil’s auto industry. Our new plant, Hyundai Motor Brazil, will produce and sell only the best quality cars to strengthen the trust that Brazilian consumers have shown in our products.”

Hyundai, which is investing a total of 600 million USD in the plant, aims to start production in the second half of 2012, eventually reaching a maximum capacity of 150,000 units annually.

The first model to be produced at HMB will be a small hatchback specifically designed for the Central and South American market. Additional models will be added after 2013, depending on the market situation and demand. All these cars will be flex-fuel cars (which can run on both gasoline and ethanol), as 90 percent of cars in Brazil run on this type of fuel.

The plant, which is located 160 km northwest of Sao Paulo city, will be built on a 1.39 million square meter site, while the plant will have a floor space of 69,000 square meters, featuring complete vehicle production facilities such as stamping, welding, painting, assembly and module lines.

Piracicaba, which has a population of 380,000, is located in Sao Paulo state, in the heart of Brazil’s automobile industry. The state and city governments have provided Hyundai with a wide range of incentives such as free use of land, support in infrastructure such as roads and some tax breaks.

Furthermore, to secure the highest quality, Hyundai Motor will enter the market with eight reliable parts suppliers, as it has done at other overseas manufacturing bases. By doing so, Hyundai Motor anticipates that it will create about 3,800 new jobs, including jobs created at its plant and at its parts suppliers.

Hyundai Motor will apply its extensive plant construction knowledge to Brazil. Hyundai has set up successful manufacturing bases in other emerging markets such as India, China and Russia, not to mention its plants in the U.S., the Czech Republic and Turkey. Hyundai’s greenfield investment experience in diverse markets will ensure that HMB’s critical start-up phase will proceed smoothly in all areas of operation, from manufacturing to administration and community relations.

Hyundai Motor sold about 80,000 units in Brazil last year, a 19% increase from 2009. While the i30 was the best-selling car in its segment, Hyundai’s eye-catching ix35 and Sonata also boosted sales momentum upward. Increasing sales of its premium lineup, such as the Azera luxury sedan and Veracruz, has also helped enhance Hyundai’s brand image in the market. Hyundai expects sales to continue growing in 2011, aiming at sales of about 93,000 units in Brazil.