Hyundai to open $400 mln car plant in northwest Russia

Automotive

South Korean auto giant Hyundai could select a site by the end of the year to build a $400 million car plant in northwest Russia, authorities in the Leningrad Region said on Thursday.

Hyundai intends to build a plant with capacity of 100,000-200,000 cars per year in the region, which surrounds St.Petersburg. The South Korean company also plans to build other auto component plants in Russia, requiring additional investment of around $300 million. Both projects will create about 7,000 jobs, the authorities of the Leningrad Region said. Hyundai is one of the biggest sellers of foreign vehicles in Russia. In the month of October, the carmaker sold 16,489 vehicles, 92% up from the corresponding period of 2006. Hyundai has plans of expanding its overseas production to two million annually and the Russian plant is expected to aid this.

With rapidly rising purchasing power in Russia, foreign auto makers are seeking to expand their presence in the country. A number of foreign companies, including auto giants US-based Ford Motor Company, Germany’s Volkswagen, Japan’s Toyota, and France’s Renault have either opened or are building plants in Russia. (rian.ru, automotive-business)

ADVERTISEMENT

Business, consumer confidence improves - Századvég Analysis

Business, consumer confidence improves - Századvég

Opposition parties to begin PM candidate primaries Elections

Opposition parties to begin PM candidate primaries

Martina Cifer joins Avison Young Hungary Appointments

Martina Cifer joins Avison Young Hungary

BFK developing regional cycling strategy City

BFK developing regional cycling strategy

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.