Kia Motors held a groundbreaking ceremony for its new plant in China on Friday. It will be built in the northeastern city of Yancheng, Jiangsu Province, with an annual production capacity of 300,000 units.

This means Kia and its affiliate Hyundai motor will be able to churn out a combined 1.73 million cars when the plant is completed in 2014. Hyundai currently operates three plants in China.

Kia's new plant will also be equipped with a 1,960 m track for high-speed test driving and a technology research center. The automaker plans to produce mid-sized and compact models there targeting the Chinese market.