Title: Aftotor, a Russian Car Assembler, Eyes Acquisition of Hyundai Motors’ Factory Amidst Sale Rumors
Content:
Amidst rumors of Hyundai Motor Company selling its factory in Russia, Aftotor, an established car assembler in Kaliningrad, Russia, has expressed interest in acquiring the facility. Talks about the acquisition of Aftotor from Hyundai’s Russian plant in St. Petersburg are reportedly underway, according to foreign media outlets, including Interfax.
While Interfax did not disclose the specific company involved, it stated that the interested party is a Russian firm. Notably, Aftotor, which was founded in 1996, has been responsible for the assembly and production of Hyundai and Kia cars in Russia.
However, Aftotor faced operational challenges following the Russia-Ukraine war last year. As a result, it ceased collaboration with Hyundai, Kia, and German companies, and now exclusively assembles and produces Chinese car brands.
Hyundai’s St. Petersburg factory, established in 2010, boasted an annual production capacity of around 234,000 units. It primarily manufactured locally-modified compact SUVs and served as an export hub for Eastern Europe. However, the factory encountered difficulties due to interrupted parts supply amidst international sanctions imposed after the Russia-Ukraine conflict.
Concerns have emerged that Hyundai may sell its Russian factory at a considerably low price. The Russian government is currently in the process of nationalizing foreign companies’ assets that departed the country following the Ukraine war. Recently, it forcibly acquired the Russian business division of Dutch beer company Heineken for a symbolic price of 1 euro.
German companies, like Volkswagen and Mercedes-Benz, which maintained relatively friendly relations with Russia, were exceptions and sold their assets at only one-fifth of their total value. Reportedly, Hyundai Motor Company aims to include a “buy back” clause in the sale of its Russian factory, providing an opportunity for repurchase once the war concludes. Hyundai has traditionally been open to the prospect of reentry until the final moments and typically requires a minimum buyback period of 5 years.
By Seo Dong-hwan, Reporter – [email protected]
Note: This content has been edited and rephrased in a professional and neutral tone to suit the format of a newspaper article.
Hyundai Motor Company Russian factory. Photo = News 1
[인포스탁데일리=서동환 기자] Amidst rumors that Hyundai Motor Company is selling its factory in Russia, Aftotor, a car assembler in Kalinegrad, Russia, is known to be interested in the acquisition.
Recently, foreign media outlets such as Interfax reported that negotiations for the acquisition of Aftotor from the Hyundai Motors plant are underway in connection with the sale of Hyundai Motors’ Russian plant in St. Petersburg, Russia.
Interfax did not mention a specific company, but reported that it would be a Russian company.
In particular, Aftotor, a car assembly company founded in 1996, is a company that has been responsible for the assembly and production of Russian cars for Hyundai Motor Company and Kia Motors.
After the Russia-Ukraine war last year, it stopped cooperating with Hyundai Motor Company, Kia Motors, and German companies, and is currently only assembling and producing Chinese car brands.
Hyundai Motor Company work was completed in St. Petersburg, Russia, in 2010 and had an annual production capacity of approximately 234,000 units.
It mainly produces locally modified compact SUVs and has been used as an export base to Eastern Europe.
However, it suffered difficulties as the supply of parts was halted due to international sanctions in the immediate aftermath of the Russia-Ukraine war.
Chung Mong-koo, honorary chairman of Hyundai Motor Company, visited the Russian factory in 2016. Photo = News 1
Some are raising concerns that Hyundai Motor Company may sell its Russian factory at a low price.
The Russian government is in the process of forcefully nationalizing the assets of foreign companies that left the country after the Ukraine war.
In fact, it recently acquired the Russian business division of the Dutch beer company Heineken for 1 euro (about 1,430 won).
German companies with relatively friendly relations with Russia, such as Volkswagen and Mercedes-Benz, were exceptions and sold their assets at a low price of one fifth of the total price of their assets.
According to one media outlet, Hyundai Motor Company wants to include a ‘buy back’ clause in the sale of its factory in Russia, allowing it to be repurchased once the war ends.
Hyundai Motors is known to keep the possibility of re-entry open until the last minute and requires a minimum buyback period of 5 years.
Reporter Seo Dong-hwan oensh1@infostock.co.kr
Copyright © Infostock Daily Unauthorized reproduction and redistribution prohibited
#Hyundai #Motor #Company #completes #sale #Russian #plant #Interest #acquiring #local #Aptator
