The recently sold Hyundai Motor Russia plant, acquired by a Russian company for a mere 10,000 rubles, approximately 140,000 won (US$108), is showing signs of resuming operations early next year.
Interfax reported on Dec. 26 (local time) that the Hyundai Motor plant in St. Petersburg, Russia is expected to resume operations in January next year. A factory official stated, “The suspension period of the plant has not been extended to January.”
Hyundai Motor had previously reported that it would extend the factory suspension period until the end of this month to the employment center in St. Petersburg earlier this month. Local media anticipate that production activities at this plant will resume after the New Year holidays from Jan. 1 to 8. It is not yet known what products will be produced when the factory, not owned by Hyundai Motor, resumes operations.
Until the eruption of the Ukraine crisis in February of last year, this plant produced various Hyundai and Kia models, including the Hyundai Creta and Solaris, and the Kia Rio. However, production was halted from March of last year due to Russia facing economic sanctions and difficulties in parts supply.
On Dec. 19, Hyundai Motor held an ad hoc board of directors meeting and approved the proposal to sell the entire stake in the Hyundai Motor Manufacturing Rus (HMMR) plant in St. Petersburg, Russia. The assets for sale included the St. Petersburg plant with the capacity to produce 230,000 units annually and the former General Motors (GM) plant site in the same city capable of producing 100,000 units.
The value of the assets subject to sale is approximately 410 billion won (US$316.24 million), including Hyundai Motor and Kia, but the scheduled selling price is only around 10,000 rubles, equivalent to about 140,000 won (US$108). The agreement includes a buyback condition, allowing the company to repurchase the factory within two years. Hyundai Motor has decided to continue providing after-sales service for vehicles already sold, taking into consideration the local situation in Russia.