Korea Trade Insurance reportedly will back Kia’s $1.1 billion capital investment in India to build its first vehicle-assembly plant in the world’s second most-populous market, through loan guarantees of up to $650 million.
Support from the state-run insurance company will make it easier for the Korean automaker to raise loans for its investment in India as well as recruit builders and suppliers for the facility, the Korean Pulse business-news website reports.
In April, Kia signed an agreement with the state government of Andhra Pradesh in southern India to build the plant on a 23.25 million sq.-ft. (2.16 million-sq.-m) site. Completion is scheduled for 2019. Capacity of the plant, which will make compact sedans and utility vehicles tailored to the Southwest Asian market, is expected to be 300,000 units annually, the automaker says.