Hyundai Motor Company plans to close two internal combustion engine (ICE) component plans in South Korea next year, according to local reports, as the country’s leading automaker looks to bring its operations more in line with future demand.
Industry sources have suggested the automaker will close two plants in the city of Ulsan, some 300km south of the capital Seoul, which manufacture forged engine components. The first closure is expected to take place in January, following by a second plant in October. The two facilities have been in operation since 1991.
Some of the components sourced from the plant will be procured from independent manufacturers, particularly engine parts produced in small volumes, while some large-volume operations will be transferred to other plants within the group along with some staff and manufacturing equipment.
Earlier this year the automaker said it aims to sell two million Hyundai- and Genesis-branded BEVs globally by 2030, with Kia aiming to sell a further 1.6 million units, with a total of 31 new BEV models scheduled to be launched by the end of the decade.