Hyundai to Build Manufacturing Plant in Brazil

Hyundai Motor has announced that it will invest about $600 million to build a new 100,000 unitsayear plant in Piracicaba City of the Brazilian state of Sao Paulo.

The new plant will be Hyundai’s seventh overseas production base. The company said that the new plant in Brazil will enable it to respond quickly to competition from Toyota and Honda, which are also seeking to build production facilities in Brazil.

Hyundai’s new plant, which aims to begin production in 2011, may directly and indirectly create about 4,000 new jobs locally. In the first phase, Hyundai Motor plans to produce an allnew flexfuel car in the Bsegment, starting from the first half of 2011, to satisfy the high demand for small cars in Brazil.

In the second phase, depending on demand in the region, Hyundai Motor plans to expand the plant, to increase its lineup and export to neighboring nations. The groundbreaking ceremony for the plant is scheduled to take place in November 2008.

James Choi, president of international sales division at Hyundai Motor, said: “The city of Piracicaba was the best choice for us because of the city’s skilled workforce, good distribution network, convenient access to a broad supplier base and the incentives offered by the state government. Hyundai Motor will do its best to contribute to the local economy and community by operating an efficient and successful plant.”