Once a factory operated on the General engines site, a place where Hyundai laid plans to restart work come spring. The initial phase focused on modernizing the retail spaces. Builders also outlined plans for new structures, a détail emphasized by the business daily Business Petersburg. The project carried a hefty price tag, with total investments pegged at 36 billion rubles, signaling a bold push to expand manufacturing capacity and create a more integrated network for Hyundai and its Korean partner brands in the region.
The production facility was set to roll out a line for three fresh models. Hyundai Tucson, Hyundai Palisade, and Kia Sportage were the envisioned trio chosen to demonstrate new capabilities and broaden the lineup. The target was to have the conveyor belt in operation by early 2023, signaling a tangible step toward scale and local employment. Yet, as reported, the project has since been placed on indefinite hold, with no immediate timetable for resumption.
Industry observers suggest that the large capital outlay might not be justifiable under current market conditions. There is concern that the price points attached to these newer models could dampen consumer demand, especially if the broader economic climate remains unsettled. In light of these uncertainties, the decision was made to pause the line dedicated to the specific models and re-evaluate the strategic path for the site.
Another factor shaping this pause appears to be a shift in focus toward keeping the existing Hyundai facility viable. The plant in Sestroretsk, already operating below capacity, has faced an extended shutdown since March as supply chains stumbled and components ran short. The corporate priority seems to be stabilizing and revitalizing that operation first, before committing to additional expansion elsewhere.
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A picture: AP/TAS