Hyundai Motor to add China plant


Hyundai is South Korea's biggest carmaker

SEOUL, South Korea (CNN) -- South Korea's biggest carmaker, Hyundai Motor Co, says it will invest $250 million to build a joint venture factory for passenger cars in China.

Its 50-50 partner is Beijing Automotive Industry Holding Co.

A Hyundai Motor spokesman confirmed to CNN Tuesday that the company had signed a memorandum of understanding with the Chinese company to build the plant near Beijing.

He said the plant would be capable of producing 200,000 vehicles a year.

Hyundai, 10 percent owned by U.S.-German automaker DaimlerChrysler, already has five Chinese ventures making a variety of vehicles.

Sonata out in October

Hyundai said in a statement it plans to produce its popular EF Sonata mid-sized sedans at the plant beginning in October, and expand into a broader range of passenger cars, including the Avante XD compact, as well as models developed at the China plant.

Late last month, Hyundai said it would make a decision in the first half of this year about the location for its first U.S. car-assembly plant.

The spokesman said Hyundai had narrowed its search for the right location to four U.S. states.

Hyundai shares were down 250 won or 0.85 percent at 29,050 won late Tuesday.