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Hyundai to build car factory in northwest Russia

According to Ria Novosti, South Korean auto giant Hyundai has signed a deal with St. Petersburg authorities to build a car factory in the northwest Russian city, a spokeswoman for the governor said on December 17.

Natalia Kutobayeva said the agreement was signed during an official visit by St. Petersburg governor Valentina Matviyenko to Seoul, but declined to give specifics on the deal. Earlier, authorities of the Leningrad Region, which surrounds Russia’s second largest city, said the South Korean company could select a site by the end of the year to build a $400 million factory with capacity of 100,000-200,000 cars per year. 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. (finchannel)