South Korea's Sungwoo postpones auto part production at former Ford facility in Leningrad region - authorities
ST. PETERSBURG. Dec 28 (Interfax) - LLC SV Rus, a subsidiary of South Korea's Sungwoo Hitech Co., has delayed indefinitely the production of Hyundai and Kia auto parts at the former Ford plant in Vsevolozhsk, Leningrad region, the press service for the Leningrad regional government told Interfax.
"SV Rus, which is implementing a project at the former Ford plant, has not abandoned its investment plans. However, the project has been postponed due to a difficult logistics situation in the car industry," the press service said.
The press service for the Leningrad Region Committee on Economic Development and Investment said in March that the South Korean company was planning to launch production in 2023.
An earlier report quoting LLC SV Rus General Director Park Hong-kwon said that the company would invest 6.8 billion rubles in the production of auto parts in the Leningrad region to make 265,000 auto parts per year, to generate 10.66-billion-ruble revenue, and to create 520 jobs.
The company closed the deal in early February and bought a manufacturing facility and a warehouse in the Leningrad region from JSC Ford Motor Company.