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Sawmill or cars: what awaits the Hyundai plant in St. Petersburg

  • August 15, 2023
  • 0

Until recently, it seemed that the factories left by the runaway automakers in Russia were not really needed by anyone. However, recently information has appeared that they are

Until recently, it seemed that the factories left by the runaway automakers in Russia were not really needed by anyone. However, recently information has appeared that they are not only actively interested in it, but because of this they almost compete. The AvtoVzglyad portal estimated who and why might need a Hyundai plant in St. Petersburg.

With a light hand, the Interfax bureau became aware of a letter sent by the leaders of the Kaliningrad region to Vladimir Putin a month ago. It came up with an initiative to transfer the Hyundai branch in St. Petersburg to Avtotor. It is clear that Avtotor itself is behind this message, because the founder of the holding company, Vladimir Shcherbakov, cannot address the president directly, but the head of the regional administration can.

steep entrance

Judging by such a steep approach, the Kaliningrad automaker has serious plans. The only pity is that mere mortals have a very vague idea about it. The same Interfax only reports that the company’s investment program involves extensive cooperation with Hyundai’s production complex in Russia. Avtotor is ready to modernize the plant in the shortest possible time, to localize the production of new generation internal combustion engines and to restart the production of hybrid vehicles, including gas-powered ones.

Formally, the St. Petersburg plant is still owned by a Korean company – it has not yet been sold to anyone or even transferred for 1 ruble, like the assets of other foreign automakers. The Koreans, of course, continue to play their cunning game and do not want to leave the Russian market for nothing. It is likely that they want to maintain their position in our country at least in part, depending on a reliable domestic partner. And who is better suited for this role than Avtotor, which has been working with Hyundai since 2012 and has real experience in producing cars of this brand, as well as established contacts with the management of the Korean company.

Competitors

There is no doubt that Avtotor will find something to occupy the idle workshops. After obtaining permission to locate production in St. Petersburg, the company is ready to expand the investment program to 70 billion rubles – a significant amount, once again confirming that Kaliningraders will not start cutting firewood in the new areas. The thought about firewood is not at all accidental.

The second contender for the St. Petersburg factory facilities is the AGR Group, owned by the Avilon dealer holding company. According to Kommersant, a delegation of AGR top managers has already left Moscow for negotiations, the specific purpose of which is not known. Something else is known.

This year, Avilon has already taken over the production sites of Volkswagen, which has fled from Russia, for a price more than 10 times lower than their real value. After that, complaints began to be heard from the employees of the purchased enterprise: “The new owner, apparently, is not interested in the production of cars at the plant. And it takes production areas and prepares them for other activities unrelated to car production. In their opinion, the customs post on the territory of the plant and part of the logistics will soon be engaged in the acceptance and clearance of wood from Karelia. Raw wood comes to the factory by rail and already processed wood is exported to China.

In the face of such a “rational” use by Avilon of the car building capacity in Kaluga, it seems perfectly logical for him to acquire a site closer to the place of extraction of that same timber to reduce logistics costs. In addition, there is an opportunity to buy cheap factory cases.

  • Manufacturer’s photo.
  • Manufacturer’s photo.

With a light hand, the Interfax bureau became aware of a letter sent by the leaders of the Kaliningrad region to Vladimir Putin a month ago. It came up with an initiative to transfer the Hyundai branch in St. Petersburg to Avtotor. It is clear that Avtotor itself is behind this message, because the founder of the holding company, Vladimir Shcherbakov, cannot address the president directly, but the head of the regional administration can.

steep entrance

Judging by such a steep approach, the Kaliningrad automaker has serious plans. The only pity is that mere mortals have a very vague idea about it. The same Interfax only reports that the company’s investment program involves extensive cooperation with Hyundai’s production complex in Russia. Avtotor is ready to modernize the plant in the shortest possible time, to localize the production of new generation internal combustion engines and to restart the production of hybrid vehicles, including gas-powered ones.

Formally, the St. Petersburg plant is still owned by a Korean company – it has not yet been sold to anyone or even transferred for 1 ruble, like the assets of other foreign automakers. The Koreans, of course, continue to play their cunning game and do not want to leave the Russian market for nothing. It is likely that they want to maintain their position in our country at least in part, depending on a reliable domestic partner. And who is better suited for this role than Avtotor, which has been working with Hyundai since 2012 and has real experience in producing cars of this brand, as well as established contacts with the management of the Korean company.

Competitors

There is no doubt that Avtotor will find something to occupy the idle workshops. After obtaining permission to locate production in St. Petersburg, the company is ready to expand the investment program to 70 billion rubles – a significant amount, once again confirming that Kaliningraders will not start cutting firewood in the new areas. The thought about firewood is not at all accidental.

The second contender for the St. Petersburg factory facilities is the AGR Group, owned by the Avilon dealer holding company. According to Kommersant, a delegation of AGR top managers has already left Moscow for negotiations, the specific purpose of which is not known. Something else is known.

This year, Avilon has already taken over the production sites of Volkswagen, which has fled from Russia, for a price more than 10 times lower than their real value. After that, complaints began to be heard from the employees of the purchased enterprise: “The new owner, apparently, is not interested in the production of cars at the plant. And it takes production areas and prepares them for other activities unrelated to car production. In their opinion, the customs post on the territory of the plant and part of the logistics will soon be engaged in the acceptance and clearance of wood from Karelia. Raw wood comes to the factory by rail and already processed wood is exported to China.

In the face of such a “rational” use by Avilon of the car building capacity in Kaluga, it seems perfectly logical for him to acquire a site closer to the place of extraction of that same timber to reduce logistics costs. In addition, there is an opportunity to buy cheap factory cases.

Source: Avto Vzglyad

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