SEOUL, March 29 (Yonhap) -- General Motors Co. on Friday signed an initial deal with local auto parts makers to sell off its shuttered plant in Gunsan, the U.S. automaker's South Korean unit said.
GM signed a memorandum of understanding (MOU) with a consortium, led by Hyundai Autotech Co., to hand over the four-assembly-line factory in the industrial port city located 270 kilometers south of Seoul, GM Korea Co. said.
The value of the contract was not immediately available.
The Detroit carmaker shut down the 260,000-unit-a-year Gunsan plant in May last year due to low utilization rate and the need to cut back on outlays. The move was in line with GM's larger global reorganization programs.
The Gunsan plant, which opened 23 years ago, produced two Chevrolet models -- the Orlando SUV and the Cruze compact -- for sales at home and abroad.
The closing down of the plant hit the city hard as it was already struggling with the closure of Hyundai Heavy Industries shipyard in 2017.
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