SEOUL (Reuters) – South Korea’s Hyundai Motor Co is in talks with a Kazakhstan company over the sale of its manufacturing plant in Russia, South Korean media reported on Thursday.
Many factories in Russia have suspended production and furloughed workers due to shortages of high-tech equipment because of sanctions and an exodus of Western manufacturers since Moscow invaded Ukraine last year.
The local government in St. Petersburg has been negotiating with Kazakhstan to sell Hyundai’s Russia plant, Yonhap news agency reported, citing a TASS report.
Yonhap reported that negotiations to sell Hyundai’s plant in St. Petersburg to an auto-related company in Astana, Kazakhstan are in the final stage, citing an unnamed source. The deal could be signed as early as June, it said.
Hyundai Motor suspended operations at its Russian factory last March.
Hyundai Motor was not immediately available for comment when contacted by Reuters.
Hyundai Motor, which together with affiliate Kia Corp 000270.KS is among the world’s top 10 biggest automakers by sales, builds about 200,000 vehicles per year in Russia, about 4% of its global production capacity.
(Reporting by Heekyong Yang; Editing by Angus MacSwan)
