Hyundai Wia to invest 210 bln won in Russian plant

SEOUL, Oct. 25 (Yonhap) -- Hyundai Wia Corp., an automotive engine unit of Hyundai Motor Group, said Friday it will invest 210 billion won (US$179 million) to build a plant in Russia.

Hyundai Wia plans to build a 240,000-unit-a-year plant in Saint Petersburg, with an aim to begin production of 1.6-liter engines in 2022, the company said in a statement.

The Russian plant will be Hyundai Wia's fifth production facility, bringing the total annual output capacity to 2 million engines in its five plants around the world, it said.

"We will be able to reduce logistics and production costs by churning out engines from the (upcoming) local plant. And we aim to advance to European engine markets through the Russian subsidiary," a company spokesman said.

Hyundai Wia currently operates four plants -- two in South Korea, one in China and one in Mexico -- which produce engines for vehicles made by Hyundai Motor Co. and Kia Motors Corp.

Hyundai Motor Co. owns a 25.35 percent stake in Hyundai Wia, with Kia Motors Co. and Hyundai Motor Group Executive Vice Chairman Chung Eui-sun holding 13.44 percent and 1.95 percent, respectively.

kyongae.choi@yna.co.kr
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