The Government of St. Petersburg and Carmaker Hyundai Signed a Special Investment Contract
OREANDA-NEWS On December 25, the government of St. Petersburg and Hyundai Motor manufacturing Rus signed a special investment contract (SPIC) with investments of 16.6 billion rubles until the end of 2027.
A source in Smolny said that this is the starting minimum amount of investment. Own investments of Hyundai manufacturing Rus will amount to 16.6 billion rubles and will be directed to the development center and modernization of production. The partner companies included in the Korean concern will invest more than 30 billion rubles in the future, the representative of Hyundai Motor manufacturing Rus added. According to the document, Hyundai will build a plant of engines, transmissions, and RnD-center (experimental design) in St. Petersburg for 27 billion rubles. The capacity of the engine plant will be 150 thousand per year.
Under the terms of the SPiC, Hyundai will be able to count on tax breaks and subsidies. Thus, the company will continue to receive compensation for duties on the import of components on the same terms, which implied an agreement on industrial Assembly, which expired in December 2018.
Acting Governor of St. Petersburg Alexander Beglov during the signing of the investment contract said that currently the level of localization of the automobile plant "Hyundai Motor manufacturing Rus" is 47%.
Hyundai plant in St. Petersburg began work in September 2010. The company produces models Hyundai Solaris, Hyundai Creta, Kia Rio and Kia Rio x-Line.
"With the signing of today's agreement, we are opening a new era of relations between us. In the future, we are waiting not only for the construction of the center, modernization of production, we implement the construction of the engine plant, which will bring new technologies to the Russian automotive industry. The Russian consumer will appreciate it, " said Lee Yong Tek, General Director of Hyundai Motor manufacturing Rus.
To attract investment in the automotive industry of the city, the Committee on industrial policy and innovation has been working on the issue of localization of production of Hyundai motors manufacturing Rus in St. Petersburg since 2017.
On June 5, 2018, it was decided to implement this project within the framework of a trilateral contract between the city government, the Ministry of industry and trade and Hyundai motors manufacturing Rus.