SEOUL, Nov. 26 (Xinhua) -- South Korea's largest automaker Hyundai Motor said Tuesday that it planned to build its first vehicle manufacturing plant in Indonesia.
The ceremony to sign a memorandum of understanding (MoU) between Hyundai and the Indonesian government was held earlier in the day at the Hyundai vehicle factory in Ulsan, near the South Korean port city of Busan.
Attending the ceremony were President Joko Widodo of Indonesia and his entourage to the special summit between South Korea and the 10 members of the Association of Southeast Asian Nations (ASEAN) as well as Chung Euisun, executive vice chairman of Hyundai Motor Group.
Widodo came to Busan for the ASEAN-ROK Commemorative Summit that ran for two days from Monday to commemorate the 30th anniversary of dialogue relations between the two sides. ROK stands for Republic of Korea.
"The establishment of Hyundai Motor's manufacturing plant in Indonesia has been made possible thanks to the continuous cooperation and support from the Indonesian government," said the Hyundai executive vice chairman.
"Hyundai will continue to listen actively and respond to the Indonesian government's expectations and policies regarding eco-friendly vehicles, while continuously contributing to the ASEAN community," said Chung.
The Hyundai factory will be located on an 8.35 million-square-foot site in Kota Deltamas in the eastern outskirts of Jakarta.
Construction will be launched in December, and the factory was expected to begin a commercial production in the second half of 2021 with an annual capacity of 150,000 vehicles. The annual capacity will eventually touch 250,000 units when the plant reaches its full capacity, Hyundai said.
Hyundai planned to invest about 1.55 billion U.S. dollars in the Indonesian plant until 2030.
The South Korean carmaker currently operates manufacturing plants in eight countries, including China, the United States and India.