Relaunch of the Renault-Samsung plant in Korea
 

Renault-Samsung only has one plant which is located in South Korea, Pusan, established in the 90s. This plant has a capacity of 300 000 vehicles per year, currently its utilization rate is only just over 40% of its capacity, due to the failure of its various models (the sedans SM3, SM5, SM7 and SUV-QM5), some of which were even exported to China. It therefore has largely underutilized capacity.


On the other hand, the Nissan Rogue sold in the United States was transferred from Japan to the US late 2013 (Smyrna plant), due to the high volume of sales on this market (200 000 units forecasted for 2014, against 163 000 units in 2013 and 142 000 in 2012). Since 2013, the Rogue is actually the US name of the X-Trail sold in Europe.


The capacity of the Smyrna plant being saturated while those of Pusan are underutilized, Renault-Nissan management has decided to add in August 2014 50 000 Rogue to the Korean factory assembly lines.


This decision allows us to anticipate the sales growth of the Rogue in the US market to 250 000 units per year. Therefore, the Pusan plant will recover production levels more in line with its capacity of around 170 000 in 2014 and 220 000 in 2015 (against 130 000 in 2013).

 

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