South Korea's Hyundai Wia Corporation has announced plans to invest KRW210bn (US$180m) to build a new engine plant near the Russian city of St Petersburg.

The facility is scheduled to become operational in 2022 with a capacity to produce 240,000 engines per year. It will initially make 1.3L-1.6L Alpha engines for Hyundai and Kia vehicle assembly plants in Europe.

The new facility will be Hyundai Wia's sixth engine plant globally, with three plants located in South Korea, one in China and one in Mexico. This latest investment will lift the company's global petrol and diesel engine production capacity to two million units per year.

Hyundai Wia is listed on the Seoul stock exchange and is 25.4%-owned by Hyundai Motors and 13.4% by Kia Motors. It is one of South Korea's largest component automotive manufacturers with an extensive range of forged and cast engine, transmission and chassis components. It also makes machine tools and defence equipment.

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