Kia to break ground on PBV facility in Hwaseong in March

Kia will break ground on its new purpose-built vehicle (PBV) facility in Hwaseong, Gyeonggi, in March after ending a year-long negotiation with its labor union over capacity.

Kia's plant in Hwaseong, Gyeonggi [KIA]

Kia will break ground on its new purpose-built vehicle (PBV) facility in Hwaseong, Gyeonggi, in March after ending a year-long negotiation with its labor union over capacity.

It will be the first domestic plant by the automaker in 26 years. It will also be the first PBV factory in Korea. A PBV is designed for specific applications such as shuttle services, last-mile delivery and ride-hailing.

Mass production will begin in December 2024, with an annual capacity of 100,000. That will increase to 200,000, in line with the labor union’s demand.

The decision comes after Kia announced the construction plan last May. Kia initially planned to make the capacity 100,000 but the labor union demanded the company increase it to 200,000 to guarantee more hires.

After 17 rounds of negotiations, the automaker accepted the union’s demand and decided to raise the capacity. A total of 876 employees will be hired at the plant, compared to the initial plan of 578.

Kia’s first electric pick-up truck and electric modules will also be made at the Hwaseong plant.

Hyundai Motor and Kia hope to raise their annual capacity to 3.23 million by 2030 to grab a 12 percent global share. Of them, 45 percent will be manufactured at domestic plants.

Kia aims to become the No. 1 PBV manufacturer by 2030.

BY SARAH CHEA [chea.sarah@joongang.co.kr]