From:Gasgoo.com

Shanghai, July 20 (Gasgoo.com) Hyundai-Kia Automotive Group signed a cooperation agreement on July 16 with the municipal government of Rizhao, a coastal city in China's Shandong province, to build an auto parts plant in the city, media reported yesterday.

The new auto parts plant, with a planned production capacity of 800,000 sets of core auto parts and components, will cost Hyundai-Kia a total investment of $290 million. The first-phase project, which is schemed to be completed by 2011, would cost $130 million and will be capable of producing 400,000 sets.

Hyundai-Kia has so far invested $490 million in its Wia engine project in Rizhao, where it has already established two plants. Each of the plant currently has an annual capacity of 400,000 sets and will be able to produce 1.3 million sets in due time. Moreover, the newly built Hyundai Wia die plant is said to be able to produce 240 sets of various precision dies and moldings every year.

"Hyundai-Kia has attached great importance to the cooperation with Shandong province and has invested in several auto parts projects in Rizhao. We hope Hyundai-Kia would further expand its investment cooperation with us," Jiang Daming, Governor of Shandong Province said at the agreement-signing ceremony.