Hyundai suspends reconstruction project of St. Petersburg plant

Hyundai Concern has indefinitely suspended the reconstruction project of the former General Motors plant in St. Petersburg.

It was planned to start the first stage of the investment project this spring - the reconstruction of the existing workshops of the plant, the Delovoy Peterburg newspaper reported citing a source.

However, this work has not started and neither has the construction of the new buildings, which was planned earlier.

The South Korean car concern bought the former General Motors plant in Shushary in November 2020. It was reported that the new enterprise will be called KHMMR-2 and 36 billion roubles will be invested in its development. It was planned to launch production of Hyundai Tucson and Palisade, as well as Kia Sportage at the plant from 2023.

Hyundai's plant in Sestroretsk has suspended work since March 1 because of a lack of components. The plant was producing Hyundai Solaris and Creta, as well as Kia Rio and Rio X.