Hyundai Motor to invest £408m in China venture

Hyundai Motor Co has announced an additional £408m investment in its China venture by 2007 to build a second plant in the world's fastest-growing auto market.

Hyundai's investment plan is aimed at meeting its production goal of 600,000 units per year in China.

General Motors said last week it would invest over £1.6bn in the next three years to more than double capacity.

Beijing-Hyundai Automotive Co, Hyundai's 50:50 joint venture with Beijing Automotive Industry Holdings, has a plant in Beijing with an annual capacity of 60,000 units currently.

"Beijing-Hyundai posted a net profit of £138m last year and the sales outlook in China is bright," says a Hyundai spokesman.

"We will inject an additional £408m including £73m reinvestment from the Chinese venture."

Construction would begin around the end of this year and completion is due in 2007.