Kia Motors has signed a memorandum of understanding with the state government of Andhra Pradesh, India, to build a new manufacturing facility in Anantapur.
The new facility, which will involve an investment of nearly $1.1bn, will cover an area of around 536 acres and incorporate facilities for stamping, welding, painting and assembly.
The car manufacturer is planning to produce a compact sedan and compact SUV for the Indian market at the new plant. Local sales are set to start towards the end of 2019.
Han-Woo Park, Kia Motors president, said: “We are delighted to announce that Kia’s newest manufacturing facility will be here in Andhra Pradesh.
“It will enable us to sell cars in the world’s fifth largest market, while providing greater flexibility for our global business. Worldwide demand for Kia cars is growing and this is our latest step towards becoming a leading global car manufacturer.”
Construction work is expected to start in the last quarter of 2017. The facility is expected to begin production in the second half of 2019, and will produce up to 300,000 units each year.
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