Hyundai could build another car plant in Brazil

Seoul, May 13: Hyundai Motor Co., South Korea's top car maker, said on Sunday it was looking at building another car factory in Brazil with annual capacity of 100,000 vehicles as part of overseas expansion plans.

Last month Hyundai completed a car assembly plant in Brazil, its first manufacturing facility in Latin America, which will have the capacity to produce 50,000 cars by 2009.

''Hyundai hopes to expand market presence in Latin America with continuous expansion of economic cooperation between the two countries, such as considering a plan to build a car factory with a capacity of 100,000 units,'' Hyundai Chairman Chung Mong-koo said in a statement.

He is in Brazil for the signing of an iron ore deal between Hyundai Steel Co., Hyundai Motor Group's steel maker, and Brazil's CVRD .

Analysts say overseas units are vital for Hyundai's growth, to shield it from frequent labour disputes at home and a strong won , although some are worried about the massive costs involved in expanding abroad.

Hyundai, the world's sixth-biggest car maker by sales volume with its affiliate Kia Motors Corp., has factories in the United States, China, India and Turkey. It is building another in the Czech Republic.

On Friday shares in Hyundai ended up 2.28 percent at 62,700 won, outperforming a 0.24 percent gain in the broader Seoul market.

REUTERS>