Korean Sungwoo Hitech has taken over the Ford plant in Vsevolozhsk – Russia

Korean Sungwoo Hitech has taken over the Ford plant in Vsevolozhsk – Russia


 

Vedomosti-Spb.- The production site in Vsevolozhsk, where the Ford car plant operated previously, has been purchased by the South Korean company Sungwoo Hitech Rus. The investor will manufacture components for Hyundai and KIA automobiles at the former factory, as reported by the press office of the regional government of Leningrad.

The new investment project was reviewed and approved at the meeting of the Regional Investment Committee on 16 December. The investment amount is 6.8 billion rubles, which covers the purchase of the site and equipment and reconstruction.

As told by the director of Sungwoo Hitech Rus: Hon Kwon Pak at the meeting of the committee, the production is planned to be launched in 2023. “Initially, we will manufacture covers for new automobile models and the mass production will start in 2023” – Pak said. The annual sales figure is expected to reach 10.66 billion rubles. The future plans of the company include the expansion of capacity and production of press lines.

“Hopefully, our joint cooperation will be ready to support you as a major investor and provide a package of tax incentives” – said the governor of Lenoblast: Alexander Drozdenko, in turn.

There are plans to create 520 jobs in the new venture. Approximately 900 employees worked at the former Ford factory in Vsevolozhsk. The management has not given a clue as to whether any of the former specialists will be invited to take part in the new project.

Ford Sollers discontinued car production at its factory in Vsevolozhsk, Leningrad region in June 2019. The regional government then announced plans to sell the former plant to another car manufacturer. Two potential investors took part in negotiations in 2019, with intentions to purchase the factory, however, no solid agreement was reached. In the meantime, the authorities have promised to provide the new owner with all the incentives, as long as the site is used for car production. Training and retraining of workers, partial reimbursement of the costs of the transport of workers, cars, etc. are amongst the incentives.

Korean car parts manufacturer Sungwoo Hitech was established in 1977. The head office of the company is in Pusan. The enterprise manufactures body power elements, doors and bumpers for Hyundai, KIA, Renault, Samsung Motors and GM Korea Company.