Former Hyundai Plant in St. Petersburg Reopens Under New Russian Owner

South Korean automaker Hyundai’s former production plant in St. Petersburg has reopened under new Russian management, state media reported Tuesday, citing the factory’s press service.

In December, the Hyundai plant — which suspended operations in March 2022 amid an exodus of foreign companies from Russia — was sold to the company Art-Finance for a reported 10,000 rubles ($111).

Art-Finance is owned by the auto dealership group Avilon, which in May bought the Russian assets of German carmaker Volkswagen, including its flagship Kaluga factory near Moscow. 

“Downtime [of the St. Petersburg plant] has not been extended. We are engaged in personnel training and equipment maintenance,” the factory’s press service was quoted as saying by the state-run TASS news agency.

According to the company, around 800 workers are currently employed at the production facility. 

Reuters reported last month that Hyundai would take a 287 billion won ($219.19 million) loss in selling the St. Petersburg plant, according to a regulatory filing by the company.

Hyundai said it plans to still provide after-sale services and other customer care businesses to support vehicle owners in Russia.

On Thursday, Russia’s Minister of Industry and Trade Denis Manturov said vehicle production at the plant, now under Art-Finance’s ownership, would start no later than mid-2024.