Donghee Auto, the contract assembler for Kia’s compact Morning and Ray models, will partially halt production beginning March 27 after a fire at parts supplier Anjeon Industrial.
On March 25, industry sources said Donghee Auto — a joint venture between Kia and parts maker Donghee Holdings — will partially suspend Morning and Ray production from March 27 and fully stop production from April 1 through April 11. Plans beyond April 11 have not been announced.
Anjeon Industrial supplies engine valves to Hyundai Motor (005380), Kia (000270), and Hyundai Wia (011210). Engine valves control the intake of air and fuel and the release of exhaust gases; they are essential to vehicle assembly. Anjeon produces more than 70 million engine valves annually and is regarded as a key supplier to the Hyundai Motor Group.
The fire on the afternoon of March 20 resulted in casualties affecting 74 people, and the plant is currently shut down.
