Hyundai Motor may start engine and gearbox production in Russia

Hyundai Motor may start engine and gearbox production in Russia

RNS – Hyundai Motor is exploring the possibilities for engine and gearbox production in Russia. The decision on the investment in the projects can be taken in 2018, as told by the Executive Director of the company Alexei Kalitsev to RNS.

“The decision on further investments is most likely to be made this year. We’re seriously examining different possibilities at the moment, including engine and gearbox production, however, it’s a little bit early to talk about the project yet. There’s an agreement with both the Ministry of Industry and Commerce and the Hyundai Motor headquarters. The final decision has not been taken yet. We expect the verdict this year. It’s also early to discuss the investment amount for the moment” – he said.

Commenting on the possibility of weekend shift addition for car production at St. Petersburg plant in order to increase the output, Kalitsev has said: “Might happen, however, it won’t have a significant effect on the production volumes”.

“The Hyundai Motor Manufacturing Rus factory operates 5-days-a-week in 3 shifts. The weekends are used for technological processes. Filling out the weekend shifts will certainly increase production, but it’s not essential. There’s no need for it yet. The plant is running efficiently now and the announced production programme meets the market demand. The factory plans to manufacture 235,000 vehicles this year. The volume is enough for this year” – he said.

As noted by Kalitsev, the current 48% localisation rate of the factory is gradually increasing, contributed by the supply of Russian steel as well, the main shipment of which is made by Severstal company.

St. Petersburg Hyundai Motor factory has manufactured 233,500 Hyundai and KIA vehicles in 2017, which is equivalent to a 13% year-on-year rise. The growth in the production volume is related to the steady high demand for the automobiles manufactured in the plant, as stated by the company. The factory plans to manufacture more than 235,000 vehicles in 2018, which indicates a historic production record for the enterprise. The total investment in the Russian plant has exceeded $1 billion.

The factory assembles Hyundai Solaris, Hyundai Creta, KIA Rio and KIA Rio X-Line vehicles in three shifts, five-days-a-week.