KIA recovers from crisis, ups 2010 production in Slovakia

December 17, 2010 | 08:00

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South Korean car maker KIA said Thursday it has recovered from the industry 2009 slump, producing an estimated 228,000 vehicles at its Slovak plant this year.

Last year, production fell to 150,000 from 201,000 in 2008 as the global downturn curbed demand in key markets Germany, Britain and Russia, spokesman Dusan Dvorak told AFP.

But KIA, which makes the Kia cee’d, Kia Sportage and Hyundai ix35 models at its the Slovak plant, said it expected production to rise to 240,000 next year on increasing SUV demand.

The plant also produces engines for a plant run by its sister firm Hyundai in the neighbouring Czech Republic, about 60 kilometres (40 miles) from the Slovak factory.

Engine production between January and November rise by one third from the same period last year to 291,035 units.

KIA said it was building a new engine facility, expected to come on-stream in 2011 and reach its full annual production capacity of 150,000 the following year.

The company will hire 100 employees next year, in addition to 2,900 people already working at the plant, Dvorak added.

Slovakia's auto industry, the driver for the former communist economy, has been recovering from the global downturn since the beginning of this year.

In October, combined car output at plants run by KIA, France's PSA Peugeot Citroen and Germany's Volkswagen grew by almost one third against the same month last year, according to Slovakia's statistics office.

AFP

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