Seoul: South Korea’s top carmaker Hyundai Motor confirmed plans of building a car factory in Russia with a capacity of 100,000 vehicles a year.
“The investment plan, which had been under review, was confirmed by chairman Chung Mong-Koo at talks with Russian economic officials during his trip to Moscow last week,” company spokesman Ki Jin Ho told AFP.
Investment details have yet to be fixed in follow-up discussions, the spokesman added.
JoongAng Ilbo newspaper said Hyundai Motor was considering investing $400 million to build the factory either in St. Petersburg or Nizhegorod province. The Korea Times said construction may begin early next year.
The proposed factory in Russia would be Hyundai’s sixth overseas. It also has plants in the United States, China, India and Turkey and a fifth is under construction in the Czech Republic.
Hyundai with its affiliate Kia Motors is the world’s sixth largest automaker. It aims to become number five but growth has been threatened by competition, falling productivity and labour disputes.
The group controls two-thirds of the South Korean auto market and has a domestic production capacity of 3.2 million vehicles per year.
It plans overseas production of some two million units -- 600,000 each in China and India, 300,000 each in the US and the Czech Republic and 100,000 each in Turkey and Russia.