Kia Motors will shut down its Yancheng Factory 1 in China this May. Following Hyundai Motor, Kia Motors began to step up its efforts to streamline its production facilities in China due to sharp drops in sales in China.
Yancheng Factory 1 was set up in 2002 by Dongfeng Yueda Kia, a joint venture launched by Kia Motors (50 percent) and its two Chinese partners, Dongfeng (25 percent) and Yueda Group (25 percent). The plant’s annual output is around 150,000 units. Dongfeng Yueda Kia is running three factories including Yancheng Factory 1. The three factories are able to produce about 890,000 units a year.
Currently, Yancheng Factory 1 is employing 6,500 workers but when the plant is shut down, a massive personnel restructuring will be inevitable.