Kia plans mainland expansion

South Korea-based Kia Motor plans to increase its China investment and raise production capacity by 2008. The Hyundai-controlled car manufacturer will boost investment with mainland joint venture partners Dongfeng Motor and Yueda Group to a total of US$648 million from US$130 million. Annual production capacity at the firm's Jiangsu province-based plant is projected to increase to 400,000 cars in 2008 from the current 100,000. Kia holds a 50% share of the venture. Dongfeng and Yueda each hold 25% shares.