February 24, 2024 4:14 am

Korean car giant sells huge factory for $77 – media — RT Business News

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South Korean auto giant Hyundai has announced plans to sell its plant in Russia as the carmaker completes its exit from the country. The facility will reportedly be sold for a nominal fee of just 7,000 rubles ($77.20).

The factory near St. Petersburg suspended operations in March 2022 after the manufacturer announced its intention to withdraw from the country, following the launch of Moscow’s military campaign in Ukraine.

According to a Hyundai press release, the firm is making final arrangements with Russia’s Art-Finance on a deal to offload its entire stake in Hyundai Motor Manufacturing Rus.

The company has also pledged to support Hyundai vehicle owners in Russia, and to continue to provide after-sales services and other customer care.

The nominal sale price for the plant was confirmed by a company official to Reuters. 

According to a regulatory filing seen by the agency, Hyundai will incur a loss of 287 billion won ($220 million) due to the sale of the plant.

The company is reportedly seeking to transfer its St. Petersburg assets to Art-Finance and include a buyback option. It is aiming to complete the deal by the end of the month.

The official told Reuters that Hyundai will be paid 10,000 rubles ($110) in total for the sale of all its Russian assets.

Hyundai and its affiliate Kia, which were once among the three best-selling car brands in Russia, joined a mass withdrawal of international corporate giants amid Western pressure and Ukraine-related sanctions on Moscow.

In response, the Russian government has forced departing businesses to sell their assets for a nominal fee, although buyback options could allow them to return.

In May, German carmaker Volkswagen sold shares in its Russian assets to Art-Finance, which is supported by the Avilon autodealer group.

As major global automakers pulled out, Chinese brands moved in to replace them. Russia is now China’s biggest car export market, Beijing’s ambassador to Moscow, Zhang Hanhui, told RIA Novosti on Tuesday.

For more stories on economy & finance visit RT’s business section

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Original Source: Korean car giant sells huge factory for $77 – media — RT Business News

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