MOSCOW/SEOUL, Sept. 25 (Korea Bizwire) — A Russian company will purchase Hyundai Motor Co.’s manufacturing plant in St. Petersburg, which has been dormant since March 2022, Russian media reported Monday citing its industry minister.
The deal will include a two-year option for the South Korean automaker to repurchase the facility, according to TASS and RIA news agencies.
“We have already formed all decisions on Hyundai’s acquisition … A local company will be the purchaser,” Russia’s Deputy Prime Minister and Industry and Trade Minister Denis Manturov was quoted by TASS as saying during an industrial exhibition in Kazakhstan.
“As far as Hyundai is concerned, it plans a (buyback) option, though considering the president’s decree, it is limited to two years,” he added.
The St. Petersburg plant, launched in 2010, suspended operations in March 2022 due to challenges related to component supplies. It had manufactured Hyundai Solaris, Hyundai Creta, Kia Rio and Kia Rio X-Line models with an annual capacity of over 200,000 units, according to TASS.
In response to recent reports on the sale, Hyundai said earlier it was considering multiple options regarding the plant.