Image: Reuters Berita 24 English - The first car plant to open in South Korea in nearly three decades will be the specialised electric veh...
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| Image: Reuters |
Berita 24 English - The first car plant to open in South Korea in nearly three decades will be the specialised electric vehicle (EV) factory being built there by Hyundai Motor Co.
According to a promise made by the business during pay talks, production is expected to start by 2025, the company's union stated in a statement.
In its statement, Hyundai Motor made no additional explanations.
Hyundai Motor Group announced in May that it would invest 63 trillion won ($48.1 billion) in South Korea through 2025. Hyundai Motor Group is home to Hyundai Motor and Kia Corp.
For the first time in four years, the unionised employees of Hyundai Motor in South Korea decided this month to consider going on strike in response to requests for increased pay. They were also upset that management prioritised foreign investment.
The most recent opening of a car factory in South Korea was by Hyundai Motor, the country's largest automaker, in 1996.
However, it said in May that it would spend $5.5 billion to construct complete EV and battery production facilities in Georgia.
According to Hyundai Motor, the Georgia EV plant is slated to break ground in early 2023 and start commercial production in the first half of 2025.
The new EV facility is essential to the future of Hyundai Motor since sales of internal combustion engines are expected to be outlawed in several areas, according to Chang Moon-su, an analyst at Hyundai Motor Securities, a division of the carmaker.
While the benchmark KOSPI was down 1.1% in noon trade, shares of Hyundai Motor were unchanged.
($1 = 1,310.5000 won)
