South Korean automaker Hyundai’s former production plant in St. Petersburg has reopened under new Russian management, state media reported Tuesday, citing the factory’s press service.
In December, the Hyundai plant — which suspended operations in March 2022 amid an exodus of foreign companies from Russia — was sold to the company Art-Finance for a reported 10,000 rubles ($111).
Art-Finance is owned by the auto dealership group Avilon, which in May bought the Russian assets of German carmaker Volkswagen, including its flagship Kaluga factory near Moscow.
“Downtime [of the St. Petersburg plant] has not been extended. We are engaged in personnel training and equipment maintenance,” the factory’s press service was quoted as saying by the state-run TASS news agency.
According to the company, around 800 workers are currently employed at the production facility.
Reuters reported last month that Hyundai would take a 287 billion won ($219.19 million) loss in selling the St. Petersburg plant, according to a regulatory filing by the company.
Hyundai said it plans to still provide after-sale services and other customer care businesses to support vehicle owners in Russia.
On Thursday, Russia’s Minister of Industry and Trade Denis Manturov said vehicle production at the plant, now under Art-Finance’s ownership, would start no later than mid-2024.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
