Hyundai Assan to increase production capacity

Hyundai Assan, a joint venture owned by South Korean car manufacturer Hyundai and Turkey's Kibar Holding, is set to increase its capacity for the second time in a year, following last year's decision to upgrade its annual output to 215,000 vehicles with an investment of around TL 1.5 billion ($500 million).

Hyundai Assan CEO Ali Kibar announced the company's investment decision at the 2015 Frankfurt Motor Show. Kibar said Hyundai Assan, which doubled its production capacity last year, is gearing up for a new investment to increase it to 245,000 vehicles this year. According to Kibar, the automaker made this decision with the company falling short of satisfying the increasing demand for the i10 and i20 models that are produced in the facilities located in the northwestern city of İzmit. Kibar said these two models are exported to more than 40 countries and have attracted greater interest than expected. Currently, the car manufacturer is striving to produce 40,000 cars that have been ordered from foreign countries.

Kibar also said Hyundai Assan is engaged in talks with Hyundai authorities from South Korea to increase the capacity of its İzmit facilities to 345,000 cars per year and to establish a new facility where the B-SUV and C sedan models will be produced. The decision will be discussed during Hyundai Chairman Chung Mong-koo's visit to Turkey this week.