Russian Minister of Trade, Industry and Energy: “Hyundai Motors factory will restart in the middle of this year”

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Minister Manturov revealed at an event

A Russian government official was reported to have said that Hyundai Motor Company’s St. Petersburg plant in Russia, which was sold for about 140,000 won, will restart operation in the middle of this year.

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According to Russian state-run media Tass on the 3rd (local time), Russian Deputy Prime Minister and Minister of Industry and Trade Denis Manturov said at an event, “For Hyundai Motors, we expect car assembly (at the Russian plant) to begin in mid-2024.” .

This is interpreted to mean that the restart of the Hyundai Motors factory will be delayed compared to the previously expected restart time. Previously, Russian media outlets such as Interfax reported that the Hyundai Motor Company plant would restart operations in January of this year.

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Hyundai Motor Company’s St. Petersburg plant suspended production since March 1 last year due to the aftermath of the war in Ukraine. Russia claims that it stopped production due to difficulties in supplying parts.

This factory is scheduled to be sold to Russia’s Art Finance for 10,000 rubles (about 140,000 won).

Art Finance is a company owned by Andrei Bablovich, chairman of Avilon Group, a Russian car dealer company. Avilon Dealer Holdings also purchased Volkswagen’s Russian assets.

Hyundai Motor Company approved the sale of shares in its Russian subsidiary (HMMR), which owns the St. Petersburg plant, at an extraordinary board meeting on December 19 last year.

The assets on the books are 287.3 billion won, but they are handed over to Art Finance for 10,000 rubles (about 140,000 won). A buyback condition was set so that the factory could be revived within two years. We plan to continue providing after-sales service (AS) for existing vehicles.

Hyundai Motor Company’s St. Petersburg plant began operation in 2010. It produced more than 200,000 units per year before halting operations in March last year. Hyundai Motor Company’s Solaris and Creta, and Kia Rio and Rio X line models have been produced here.

Source: Donga

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