South Korean auto giant Hyundai has signed a deal with St. Petersburg authorities to build a $400 mln car factory in the northwest Russian city, a spokeswoman for the governor said on Monday, RIA Novosti reports.
Natalia Kutobayeva said the agreement was signed during an official visit by St. Petersburg governor Valentina Matviyenko to Seoul.
"Today, during a meeting with Hyundai President Chung Mong-koo in Seoul, Matviyenko signed a protocol on establishing a Hyundai car assembly facility in St. Petersburg. Korean investors are planning to invest $400 million in the production facility, which will produce about 100,000 cars per year," the St. Petersburg government said in a statement.
With rapidly rising purchasing power in Russia, foreign auto makers are seeking to expand their presence in the country.
A number of foreign companies, including auto giants U.S.-based Ford Motor Company, Germany's Volkswagen, Japan's Toyota, and France's Renault have either opened or are building plants in Russia.
|
