Kia is planning to build its first North American assembly and manufacturing plant in Georgia, at a cost of $1.2 billion (£691 million), by 2009.

It is expected to produce 300,000 vehicles a year at the 2,200 acre facility.

Kia expects its North American sales (US and Canada) to climb by 15% to 350,000 units in 2006, and further grow to 800,000 units by 2010.