Korean Automaker Launches Plant in Russia
September 21, 2010 at 11:25 am
South Korea’s largest car company is moving forward with plans to capture more of the Russian auto market.
Hyundai opened a new plant just outside St. Petersburg Tuesday, during a ceremony that Russian Prime Minister Vladimir Putin attended.
The company says the $654 million factory will create more than 5,000 jobs, including almost 3,000 at facilities that will manufacture parts.
Car sales had slipped in Russia due to the global recession, but new data show the recovery and a government incentive program have boosted sales in recent months.
Mr. Putin has been leading a push for more foreign auto companies to build vehicles and components in Russia. He praised Hyundai for going ahead with the project despite the global recession.
Other car companies that have opened plants in Russia include Japan’s Toyota, and American automakers General Motors and Ford.
Hyundai has been increasingly focused on international sales. It says production at the St. Petersburg plant will begin early next year, with the factory producing 150,000 vehicles a year by the end of 2012.
Hyundai has plants in India, Turkey, the Czech Republic and the United States.
Earlier this month, the company opened its third plant in China. Hyundai says it expects sales in China to top the 4 million mark once the factory is completed in 2012.
On Monday, Japanese automaker Nissan announced plans to double its capacity in China. Japan’s third largest car company said it plans to produce 1.2 million vehicles in China by 2012.
Some information in this story was provided by AP, AFP and Bloomberg.
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