The Korea Export Insurance Corporation (KEIC) reportedly plans to provide US$255m of loan guarantees to Hyundai for the construction of a car assembly plant in the St Petersburg area.

ITAR-TASS reported that Hyundai could borrow an unspecified amount of funds from ING, Societe Generale, Natixis and West LB. The company plans to use the funds to buy equipment for the plant.

Hyundai is currently building the plant and plans to start production in September 2010.

The plant is expected to produce 150,000 cars per year.