- Hyundai holds groundbreaking for 150,000 units-a-year plant in Piracicaba, Brazil - New plant will produce exclusive models for region starting in 2H 2012 - Brazilian plant will be Hyundai’s gateway to Central and South American markets
Hyundai Motor Company, South Korea’s largest automaker, started construction on its seventh overseas plant in Piracicaba, Sao Paulo state, to actively respond to soaring demand in one of the world’s fastest growing markets and to bring its manufacturing presence in so-called BRIC countries full circle.
The groundbreaking ceremony for Hyundai Motor Brazil (HMB) was attended by over 300 VIPs, including Sao Paulo Governor Geraldo Alckmin, Sao Paulo’s former Governor Alberto Goldman, Piracicaba Mayor Barjas Negri and other government officials, executives and employees of Hyundai Motor and its parts suppliers, as well as local dealers and media members.
"Brazil is growing into one of the world's biggest economic powers through stable economic growth and increased foreign investment, and the state of Sao Paulo is the heart of Brazil's economy," Jong-Woon Shin, Hyundai Motor's Vice Chairman, said during his welcome remarks. "Hyundai Motor, together with its suppliers, will create new jobs and contribute to Brazil's auto industry. Our new plant, Hyundai Motor Brazil, will produce and sell only the best quality cars to strengthen the trust that Brazilian consumers have shown in our products."
Hyundai, which is investing a total of US$600 million in the plant, aims to start production in the second half of 2012, eventually reaching a maximum capacity of 150,000 units annually.
The first model to be produced at HMB will be a small hatchback specifically designed for the Central and South American market. Additional models will be added after 2013, depending on the market situation and demand. All these cars will be flex-fuel cars (which can run on both gasoline and ethanol), as 90 percent of cars in Brazil run on this type of fuel.
The plant, which is located 160 km northwest of Sao Paulo city, will be built on a 1.39 million square meter site, while the plant will have a floor space of 69,000 square meters, featuring complete vehicle production facilities such as stamping, welding, painting, assembly and module lines.
Piracicaba, which has a population of 380,000, is located in Sao Paulo state, which is central to Brazil’s automobile industry. The state and city governments have provided Hyundai with a wide range of incentives such as free use of land, support in infrastructure such as roads and some tax breaks.
Furthermore, to secure the highest quality, Hyundai Motor will enter the market with eight reliable parts suppliers, as it has done at other overseas manufacturing bases. By doing so, Hyundai Motor anticipates that it will create about 3,800 new jobs, including jobs created at its plant and at its parts suppliers.
Hyundai Motor will apply its extensive plant construction knowledge to Brazil. Hyundai has set up successful manufacturing bases in other emerging markets such as India, China and Russia, not to mention its plants in the U.S., the Czech Republic and Turkey. Hyundai’s greenfield investment experience in diverse markets will ensure that HMB’s critical start-up phase will proceed smoothly in all areas of operation, from manufacturing to administration and community relations.
Hyundai Motor sold about 80,000 units in Brazil last year, a 19 percent increase from 2009. While the i30 was the best-selling car in its segment, Hyundai’s eye-catching ix35 and Sonata also boosted sales momentum upward. Increasing sales of its premium lineup, such as the Azera luxury sedan and Veracruz, has also helped enhance Hyundai’s brand image in the market. Hyundai expects sales to continue growing in 2011, aiming at sales of about 93,000 units in Brazil.
Hyundai’s presence in the region has gradually expanded over the years and will reach a climax in 2014, when the 2014 FIFA World Cup™ takes place in Brazil. Hyundai has an 11-year association with FIFA, serving as the official automotive supplier to all FIFA-sanctioned events around the world. Hyundai is currently one of FIFA’s top partners and has extended its strategic sponsorship agreement with FIFA to cover the 2022 FIFA World Cup™ in Qatar.
Hyundai, which exported its first car to South America 1976 (the Pony, to Ecuador), has been carrying out a variety of Corporate Social Responsibility (CSR) activities in the region, including building houses and fixing public facilities, as well as delivering donations in Brazil to contribute to the local community. Earlier this year, Hyundai sent a third round of its Happy Move Global Youth Volunteers group to Brazil.
<Photo Caption> Hyundai Motor Company, South Korea’s largest automaker, held a groundbreaking ceremony on Feb. 25 for its seventh overseas plant, in Piracicaba, Sao Paulo state, to actively respond to soaring demand in one of the world’s fastest growing markets.
Photo 1 In front of the commemorative cornerstone, from left to right: Brazil Congressman Antonio Thame, Sao Paulo Vice Governor Guilherme Afif, Piracicaba Mayor Barjas Negri, Sao Paulo Governor Geraldo Alckmin, Hyundai Motor Vice Chairman Jong-Woon Shin, Sao Paulo’s former Governor Alberto Goldman, S.S. Park, South Korean Consul General to Brazil, and Y.S. Lee, representative of Hyundai's suppliers. Photo 2 Hyundai Motor Vice Chairman Jong-Woon Shin and Sao Paulo Governor Geraldo Alckmin shake hands in front of the commemorative cornerstone.
Photo 3 Hyundai Motor Vice Chairman Jong-Woon Shin presents Sao Paulo Governor Geraldo Alckmin with a plaque representing Hyundai's appreciation.
Photo 4 On stage, from left to right: Brazil Congressman Antonio Thame, Sao Paulo Vice Governor Guilherme Afif, Piracicaba Mayor Barjas Negri, Sao Paulo Governor Geraldo Alckmin, Hyundai Motor Vice Chairman Jong-Woon Shin, Sao Paulo’s former Governor Alberto Goldman, S.S. Park, South Korean Consul General to Brazil, and Y.S. Lee, representative of Hyundai's suppliers.