SsangYong Motor to build first overseas plant in ChinaSsangYong Motor signed a letter of intent with Shaanxi Automobile Group on Tuesday to form a joint venture with the Chinese auto company and establish its first overseas factory in China.
“It is quite essential to have a local completely built-up plant in China to increase our competitiveness in the rapidly growing Chinese car market and to increase our sales volume,” said SsangYong Motor CEO Choi Johng-sik at the signing ceremony held in the Chinese city of Xi’an with Mayor Shangguan Jiqing and Yuan Hongming, president of Shaanxi Automobile Group.
If the two companies follow through with the joint venture, it will be SsangYong’s first overseas production plant.
The Korean automaker has been reviewing the central and western parts of China as possible sites for the facility, considering the growth potential of China’s massive automotive market and recent Chinese government policies focused on development in that region.
“Xi’an is a strategic bridgehead for West China Development by the Chinese government and one of the key cities with an excellent geographical location, industrial infrastructure and facilities,” SsangYong Motor said in a statement Tuesday.
The joint venture will be finalized after approval is given from Ssangyong Motor’s board of directors as well as central and local governments in China.