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GM Daewoo Starts Construction of New Diesel engine Plant

GM Daewoo has started building of a new diesel engine plant in Gunsan, Korea.

Total investment in the diesel programme, including engineering development, will be close to 475 billion Korean won (£213 million). The 19,200-sq.m facility, which is adjacent to GM Daewoo's vehicle manufacturing facility in Gunsan, will produce a new family of Euro IV-compliant 1.5-litre and 2.0-litre diesel engines. The engines will power a range of vehicles to be sold in both the domestic Korean market and export regions including Europe.

The production facility's machine line will be 90% automated and the engine assembly line 40% automated. The entire plant will be designed for flexibility in order to accommodate future engine products. It will have more than 250 employees. Construction of the plant is expected to be completed in April 2005, with production commencing in early 2006. The annual manufacturing capacity is expected to exceed 250,000 units.

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