Prime.- Hyundai plans to establish an engine factory, manufacturing petrol engines in St Petersburg in October 2021, as stated by the General Director of Hyundai WIA Rus Oh Singhun, during a meeting with the Deputy Governor of the city.
“We are planning to open a factory with an annual production capacity of 330,000 engines, operating in three shifts. The production volume is planned as 233,000 engines per year, more than 20% of which will be exported. Serial production is planned to be launched in October 2021. Over 500 jobs will be created in the engine factory. Approximately 12.7 billion rubles will be invested in the project” – as told by Oh Singhun.
As emphasised by the St Petersburg government, the construction project of the new plant is not included in the previously signed Special Investment Contract. The signature of a SPIC is currently being discussed with Hyundai WIA, which belongs to the Hyundai global group of companies.
The government of St Petersburg and Hyundai Motor Manufacturing Rus plant have signed a SPIC in December 2018, within the framework which approximately 16.6 billion rubles have been invested in the company for the development of production in the Northern Capital of the country. The Russian Ministry of Industry and Commerce is the third party of the agreement.
The total amount of investment within the scope of the SPIC may exceed 35 billion rubles, taking into account not only the investment in the car plant and the engine factory, but also the suppliers. According to the documents of Hyundai, the SPIC also proposes the construction of a research and development centre.
Hyundai Motor Company established the Hyundai Motor Manufacturing Rus factory in St. Petersburg in October 2010. Hyundai Solaris, Kia Rio, Kia Rio X-Line and Hyundai Creta crossover are the models currently being manufactured in the car factory. The plant has the highest quantity of manufactured automobiles in the city. The plant has produced more than 1.7 million vehicles in eight years of activity. Over 240,000 automobiles are planned to be manufactured in the enterprise this year.
Hyundai WIA is the second biggest automotive parts and engine manufacturer in South Korea. The company also produces machine tools and attains the biggest market share in South Korea since the year 2000.
