SsangYong Motor signed an agreement with Chinese automaker Shaanxi Automobile Group to set up a joint venture for establishing a SsangYong production plant in China, the automaker said Tuesday.

The joint venture will become the Korean automaker’s first overseas production base. 


“It is essential to have a local plant in China to increase our competitiveness in the rapidly growing Chinese car market and to increase our sales volume,” said SsangYong Motor chief Choi Johng-sik.

The company said it would study the feasibility of constructing production facilities for its vehicles. It will also look into establishing an automotive cluster with its major suppliers that will also enter the market.

“We are reviewing the central and western parts of China for the establishment of our first overseas production facility by considering the Chinese government’s policies and the growth potential of the nation’s automotive market,” the company’s spokesperson said.

By Shin Ji-hye (shinjh@heraldcorp.com)