The Chinese venture of Kia, part of the Hyundai-Kia Group, is seeking to borrow US$250m to more than triple its production in China.

Dongfeng Yueda Kia Motors Co., in which Kia Motors has a 50% stake, will hire Citigroup Inc. to arrange the five-year financing, the venture's first syndicated loan.

Funds will be used to build Dongfeng Yueda's second plant in China's eastern Jiangsu province, which is capable of making 300,000 passenger cars a year.

The venture sold 77,000 cars in the first eight months of the year to meet 55% of its target for 2006, said Lee Hwan Wook, a manager of investor relations at Kia Motors in Seoul. Dongfeng Yueda Kia generated US$10m of profit in the first half of the year after recording a 59% growth in sales to US$690m by selling 64,000 cars.

The venture's first production facility can make 130,000 passenger cars a year, including Optima sedans. The second plant will be completed by the end of 2007.

Source:佚名