Hyundai to build first vehicle manufacturing plant in Indonesia

Hyundai

November 27, 2019 – Hyundai Motor Company has signed a memorandum of understanding (MOU) with the Indonesian government for the construction of its first vehicle manufacturing plant in the country.

 

The firm plans will invest $1.55bn in the new 8.35 million ft² facility until 2030, including product development and operation costs.

 

Hyundai believes that the facility will support its growth in the new Association of Southeast Asian Nations (ASEAN) markets while helping in combating declining demand in the global automotive market.

 

Planned to be built in Kota Deltamas (City of Deltamas), an integrated industrial, commercial and residential district in Jakarta, the plant will have an initial production capacity of 150,000 vehicles annually and a peak production capacity of approximately 250,000 units per annum.

 

Hyundai Motor Company executive vice-chairman Euisun Chung said: “The establishment of Hyundai Motor’s manufacturing plant in Indonesia has been made possible thanks to the continuous cooperation and support from the Indonesian government.

 

“Hyundai will continue to listen actively and respond to the Indonesian government’s expectations and policies regarding eco-friendly vehicles, while continuously contributing to the ASEAN community.”

 

Construction on the Indonesian plant is scheduled to commence in December 2019, with completion planned in the second half of 2021.

 

Featuring facilities for stamping, welding, painting and assembly, the vehicle manufacturing plant will produce compact SUV, compact MPV, and sedan models specifically designed for south-east Asian customers.

 

Hyundai said it is exploring the production of ASEAN-specific electric vehicles (EV) at the new plant.

 

The company expects the new plant to make more than $20bn in economic contribution over the first decade to the Indonesian economy, in addition to creating more than 23,000 new direct and indirect jobs.

 

Currently, Hyundai Motor operates manufacturing plants in eight countries including the US, China and India.

 

The Indonesian plant will help Hyundai extend its global production network while optimising its supply to meet global customer demand.

Source:- http www.worldconstructionnetwork.com/news/hyundai-to-build-first-vehicle-manufacturing-plant-in-indonesia/

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