The Hyundai Motor Manufacturing Rus LLC facility in St. Petersburg has extended its shutdown through December 31, 2023, according to reports from TASS citing the city’s Employment Center. The company confirmed that the business will remain closed until year-end, leaving 502 workers idle, which represents roughly half of the workforce at the plant. These details align with updates from the regional labor authorities in St. Petersburg.
Former Deputy Prime Minister and Minister of Industry and Trade Denis Manturov commented on the situation, noting that the buyer for the St. Petersburg plant would be a Russian company and that the agreement could include a buyback option. Manturov also clarified that while Hyundai had sold the facility with a buyback provision, the scope of this option was constrained by a presidential decree dated to two years. This means that any potential reactivation under a buyback would be time-limited and subject to state approval.
Hyundai’s St. Petersburg automobile plant began operations in 2010. The site has a stated production capacity of about 200 thousand vehicles per year. In its prior production run, models such as the Hyundai Creta and Solaris were manufactured locally, alongside the Kia Rio and Rio X-Line, before production halted in March 2022. The extended closure marks a significant shift for the facility and the regional automotive supply chain.
Industry observers have pointed to broader regional dynamics influencing the plant’s status. Earlier discussions indicated a pivot toward other markets, with Iran cited as a priority for certain vehicle exports elsewhere in the Russian automotive ecosystem. The current development at the St. Petersburg site underscores the complex interplay of corporate strategy, state policy, and market conditions in Russia’s automotive sector.
As the ownership and future of the plant remain in flux, stakeholders across the supply chain continue to monitor potential outcomes. The extended shutdown affects not only production schedules but also the stability of local employment and supplier relationships. Industry analysts emphasize that any revival will depend on a combination of strategic investment, regulatory alignment, and market access considerations for Russian-owned buyers seeking to reconstitute operations at the site.