The facility with an annual capacity of 300,000 vehicles will bring Kia's total capacity in China to 730,000 vehicles.
Kia said the new plant would produce "strategic models developed especially for the Chinese market."
“Kia is one of the fastest growing automotive companies in the Chinese market and this would not be possible without the continuous support and cooperation from the governments and citizens of Jiangsu and Yancheng. With our third China plant, which we will begin constructing at the end of next year, Kia will be well-positioned to provide its growing Chinese customer base with stylish, safe, reliable and high-quality vehicles while also helping to further develop the local economy and improve people’s lifestyles,” said Hyundai Motor Group Chairman, Mong-Koo Chung.
Kia sold 333,028 vehicles in China in 2010, representing a 38% increase over 2009.
Hyundai and Kia expect to reach sales of around 1.15 million vehicles in China this year, placing it third in the market behind Volkswagen and General Motors.
