Hyundai sold its automobile factories in Russia
- January 26, 2024
- 0
Hyundai announced that it has signed an agreement to sell two of its factories in Russia, making the South Korean company the last global automaker to leave Russia
Hyundai announced that it has signed an agreement to sell two of its factories in Russia, making the South Korean company the last global automaker to leave Russia since the start of full-scale war in Ukraine.
This was reported by Reuters, Ukrinform reported.
Russian buyer Art Finance bought Hyundai’s St. It said it completed the purchase of the St. Petersburg facilities on January 24 and received approval from the Russian government and the Federal Antimonopoly Service.
In a statement on Friday, Hyundai Motor confirmed that it had signed an agreement on the sale of production facilities in Russia, but did not specify which company it was, although it was Art-Finance with which they had previously negotiated.
Art-Finance said Hyundai’s assets have become part of the AGR group. According to them, these assets “include the company’s two production facilities located in St. Petersburg: a facility in the Kamianka industrial zone and a facility in the Shushary industrial zone.”
The second facility was owned by General Motors before Hyundai acquired it in 2020. The total annual capacity of both facilities is approximately 300,000 cars.
The company “Art-Finance” is owned by Andrii Pavlovich, who acquired Volkswagen’s Russian assets in May 2023. The name of the Volkswagen factory was changed to AGR Automotive. “Art-Finance” stated that the name of the Hyundai factory will change after all registration procedures are completed.
In December, Hyundai announced that it plans to continue providing after-sales services for existing vehicles, given local conditions in Russia.
Most European, Japanese and South Korean automakers suspended production and withdrew from the Russian market after the Russian Federation entered Ukraine in February 2022. Because Russia made it difficult to raise funds, companies often sold their factories for a nominal fee.
In December, Hyundai Motor announced that it planned to sell its assets in Russia for 10,000 rubles ($111.69) and made a loss of 287 billion won ($214.7 million). Production at the company’s main facility was suspended in March 2022.
As reported by Ukrinform, the German automobile concern Volkswagen Group has completed the sale of its shares in the Russian Federation to a local investor.
Source: Ukrinform
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