Kia, Korean auto giant to establish assembly plant in Nigeria

By Moses Ebosele, Transport Reporter

February 2, 2006

AFTER over a decade in the woods, a fresh breath air may offer elixir to the nation’s troubled automobile producing sector with Kia Motor Corporation of South Korea concluding plans to commence local ‘trial production’ in the country.


Already, Kia, which won several local and international awards for its technology and marketing initiatives, in the last five years, has secured a parcel of land in Lagos for its plant, with 2007 as the target full production date.

The development is coming on the heels of a memorandum of understanding (MOU) signed between Ogun State Government and COMIL a Brazilian auto firm for the establishment of an assembly plant in the state.

Kia has confirmed its intention to the Federal Ministry of Industry and National Automotive Council (NAC) on the local production scheme expected to also bolster allied industries in the automotive sector.

Speaking at an interactive session with journalists, national co-ordinator of Dana Motors sole representatives of Kia Motors in Nigeria, Dinesh Tanwani disclosed that the firm recently imported completely knocked down (CKD) components for the ‘trial production’ of four Rio at the location situated in the Amuwo Odofin area of Lagos.

Accompanied by Ben Chukwurah and Bedford Bokromo, corporate affairs manager of Dana and managing director of Eagle Eye Company respectively, Tanwani said that Kia Motor Corporation was particularly motivated to embark on the project because of the interest, which the products generated in Nigeria, especially in the last two years.

He added that all necessary structures were being put in place to ensure a hitch free ‘trial production,’ adding that the development was expected to promote affordability of Kia cars.

He expressed optimism that the aim of Kia was to be one of the first five auto firms in the world, adding that information received around the world indicated that Kia products were doing ‘tremendously well’ in the market.

He disclosed that necessary structures were being put in place to kick-start the ‘trial production’ by end of 2007.

For example, Kia announced at the weekend that its exports to the United States market in 2004 increased to 301,586, 31 per cent increase over last year.

The Carnival multi purpose vehicle (called the Sedona in the U.S. market) and Sorento accounted for the highest increase to the United States with 72,016 and 57,631 units respectively.

“In 2004, we saw the positive effect of a more upscale product mix, moving Kia brand appeal to a broader audience.

“The optimal mid-size Sedan, Sedona minivan and Sorento mid size continued to drive sales, with record gains for the year,” says Peter M. Butterfield, president and CEO, Kia Motors America in a statement.