After holding a completion ceremony for its module plant in Jiangsu Province, China, on December 27, MOBIS began full-fledged production of modules, thereby further expanding its manufacturing outposts in the country. In November, MOBIS also acquired approval for the set-up of a module plant in Beijing.
With the operation of the Jiangsu-MOBIS plant, MOBIS is equipped with three local corporations in China in addition to Shanghai-MOBIS, established last year, and Beijing-MOBIS to be completed in May 2003.
MOBIS' 100% invested Jiangsu-MOBIS is the first module plant that has ever been constructed by a foregin company in China. This plant is scheduled to supply chassis and driver's seat modules for Pride and Accent cars of DYK (Dongfeng Yueda Kia) in the province.
Jiangsu-MOBIS plans to produce 50,000 units of modules by 2003 initially at the plant and then expand its capacity to an annual 500,000-unit scale starting from 2005.
MOBIS plans to expand its total module production capacity to an annual one million units by 2008. For this, it will also increase the capacity of the ratified Beijing module plant from 200,000 units to 500,000 units in the future. Subsequently, the company will continue to expand sales gradually to 2008, starting from 300 billion won in annual sales from the three local corporations in China.
At the completion dinner ceremony attended by about 150 locally recruited employees and 60 Chinese government officials, MOBIS module division head Park Seung-Ha said, "With the establishment of this module plant, I expect that the competitiveness of Hyundai and Kia cars will be significantly strengthened." He added, "We plan to utilize our advance into China as the cornerstone for our future full-swing advance into other overseas markets."