The South Korean company Hyundai Motor did not exercise its right to buy back its former plant in St. Petersburg. It sold it after the start of the war in Ukraine for 7,000 rubles (currently 77 euros).
The South Korean company Hyundai Motor announced on Monday, February 2, that it did not exercise its right to buy back its former plant in St. Petersburg. The reason was the ongoing war in Ukraine, Reuters reported in December, citing sources within the company, according to DW.
Production at this site in St. Petersburg was halted in March 2022 due to the onset of Russia's invasion of Ukraine and the subsequent sanctions that caused disruptions in the supply of components. In 2024, Hyundai sold the plant for a symbolic amount of 7,000 rubles. According to its own data, the South Korean automaker incurred losses of 200 million euros in the process.
The buyer was LLC "Art-Finance," which had previously acquired Volkswagen's assets in Kaluga. Under the terms of the deal, Hyundai could buy back the plant within two years. This period expired on January 31.
The plant began assembling vehicles for the Chinese brand On December 17, it became known that the group of companies "AGR" (the new name for the former LLC "Art-Finance") produced a test batch of vehicles for the Chinese brand GAC at the former Hyundai plant in St. Petersburg. Information about the partnership between "Art-Finance" and GAC emerged in November 2023. At that time, it was reported that initially, cars would be assembled from existing parts at the facility.
The Hyundai Motor plant in St. Petersburg was opened in 2010. Before the war in Ukraine, it produced more than 200,000 vehicles per year, including the Hyundai Solaris, Hyundai Creta, and Kia Rio.
Leave a comment