BUSINESS

Hyundai Motor invests W300b to upgrade factory

By Korea Herald
  • Published : Jul 23, 2017 - 14:56
  • Updated : Jul 23, 2017 - 19:02

Hyundai‘s second plant in Ulsan, South Gyeongsang Province. Hyundai Motor Group

Hyundai Motor, South Korea’s largest automaker, will invest 300 billion won ($270 million) through Sept. 17 to upgrade its second factory in Ulsan, the company said Sunday.

This is the second major reconstruction this year, following the rebuilding of the first factory in Ulsan last February for which Hyundai spent 220 billion won, the company said.

Seeking to expand productivity, all stages of production, including assembling car body and painting, will undergo resetting, the company said.

Hyundai’s four models -- the SanteFe and Tucson SUVs, Avante compact sedan and i40 wagon-- that are currently produced at the second factory will continue to be made there after reconstruction with no new models added.

For the first time among Hyundai’s plants, a height adjustable conveyer belt system will be installed to enhance convenience for workers.

The rebuilt factory will also be equipped with cutting edge facilities for high quality car production, the company said.

A robot, for instance, will be introduced in the car painting stage to heighten efficiency.

Hyundai’s flagship models -- Korea’s first mass produced car Pony, Stella midsize car, the country’s first sports car Scoupe, Sonata midsize sedan, Equus premium sedan -- were produced in the second factory built in 1986, the company said.

“Alongside improving competitiveness, we also hope the reconstruction of the second factory will contribute to the regional economy,” said Hyundai Motor.

About 100 companies and up to 5,000 workers daily are projected to be put to work, the company said.

A Hyundai Motor spokesperson said there are no immediate plans to upgrade other factories.

By Kim Bo-gyung (lisakim425@heraldcorp.com)