Hyundai Pushes Ahead with European Assembly Plant

·          1 Bln Euro to be invested in 300,000 units per annum plant

·          Production to start in 2H 2008, two years after start of construction

·        Ostrava, Czech Republic prime candidate site

(Seoul, Korea)  Hyundai Motor Co. Chairman Chung Mong-Koo met with Czech Prime Minister Jiri Paroubek in Prague yesterday to discuss Hyundai’s planned investment for a European assembly plant.

The Czech city of Ostrava is a prime candidate site for the 300,000 units per annum facility as it is located just 70km from Zilina Slovakia where Hyundai affiliate Kia Motors Corp. is currently constructing a plant.  Its close proximity to the Kia operation and cluster of Kia suppliers setting up in the Zilina area would help Hyundai and Kia maximize synergies and efficiencies of scale.

After North America, Europe is Hyundai’s second largest market with sales expected to reach 420,000 units this year.  Hyundai forecasts European sales of 520,000 units in 2006 and 580,000 units in 2007.