The plants will be built by Beijing Hyundai Motor Company (BHMC), a 50-50 joint venture between Hyundai Motor Company and Beijing Automotive Industry Holding Co, and will bring the carmaker’s total plants in the country to five.

BHMC will build its fourth plant in Cangzhou, Hebei province, and its fifth plant in Chongqing, with an annual production capacity of 300,000 units per plant. With the completion of the two plants by 2018, BHMC will have the capability to produce up to 1.65 million cars per year in China.

BHMC plans to open the fourth plant with an initial annual capacity of 200,000 units in the second half of 2016, and later add capacity to reach the expected 300,000 units per year. The plant in Hebei will feature vehicle production facilities such as stamping, welding, painting, assembly and module lines.

Construction on the fifth plant in Chongqing will start in Q3 2015 and once completed, it will also have an annual capacity of 300,000 units. The plant will produce small and mid-size models specifically designed for the Chinese market, starting from the first half of 2017.

Hyundai established BHMC in 2002, opening its first plant in China.