Hyundai Set to Break Ground on Russian Plant
The planned $400 million plant will be a freestanding facility capable of producing 100,000 vehicles annually.
Hyundai Motor Co. Ltd. plans to break ground at the site of its new St. Petersburg , Russia, plant June 5.
Hyundai Vice Chairman and co-CEO Kim Dong-jin will officiate the groundbreaking ceremony.
The planned $400 million plant will be a freestanding facility capable of producing 100,000 vehicles annually.
Upon its completion, there will be two plants in Russia producing Hyundai vehicles. The other is a complete-knocked-down operation run by OOO Taganrogsky Avtomobilny Zavod (TagAZ). TagAZ is controlled by the Doninvest Group. Hyundai, itself, is not a partner and has no investment in that plant.
The new St. Petersburg facility will be wholly owned by Hyundai. It will be a full manufacturing plant, not a CKD operation, although some parts and major components will be imported. Hyundai has not specified the vehicles to be produced there.
Hyundai also exports completely built-up vehicles to Russia from its Korean plants. In 2007, the auto maker shipped 147,843 vehicles to Russia, about 55% CKD kits.
In first-quarter 2008, Hyundai’s Russian sales were up dramatically, jumping 96% to 44,054 units, according to the auto maker.
The TagAZ plant will continue to produce its current line of Hyundai vehicles, which includes the Elantra XD launched this month, plus the Accent, Sonata, Santa Fe and Porter pickup.
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