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July 12, 2021

Ssangyong to sell plant, build new EV factory nearby

Bankrupt Ssangyong announced its latest plans to stay in business.

By Graeme Roberts

Ssangyong Motor announced plans to sell the site of its only vehicle assembly plant to help raise funds, as it continues its battle to stay in business.

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The government of Pyeongtaek, where the plant is located, 70km south of Seoul, said it had signed a memorandum of understanding with the court-appointed administrator to acquire the 850,000 sq m site which has been valued at KRW900bn (US$785m).

The struggling automaker, which was put under court receivership in April, has implemented a number of self-rescue measures after its largest shareholder, Mahindra & Mahindra, failed to secure a buyer for its 75% stake after two years of trying.

According to local reports, Ssangyong plans to build a new plant in the same city. The automaker had earlier confirmed it plans to switch its entire product range to all-electric models.

Pyeongtaek city government said it would provide administrative support for the process of building and relocating to a new plant.

Mayor Jung Jang-seon said in a statement “We will actively support Ssangyong Motor to grow into a global company that contributes to the development of the local economy.”

Earlier this month, Ssangyong administrator, EY Han Young, launched a closed auction for the company and will begin to review the bids from the end of July.

Today, close to half of Ssangyong’s 4,590 employees began taking unpaid leave on a rotational basis, as part of a two-year company self-rescue programme agreed with the labour union in June.

Under the plan, half of the 4,190 production staff and 30% of the 400 white collar workers will take unpaid leave in turns to help the company cut costs.

Free Report
img

What does the future hold for the US electric vehicles market?

The US Electric Vehicles (EV) market has established itself as one to watch. Despite China maintaining the number one spot, the US holds significant standing as one of the major EV markets, with GlobalData’s whitepaper identifying a strong growth trajectory within the forecast period. This report further analyzes the trends, market drivers, and government incentives set to influence and facilitate the market.   This report also looks beyond the US and touches on environmental concerns set to drive the EV market worldwide.   Want to find out more? This report demonstrates GlobalData Explorer’s sector analysis capabilities, showing how you can:  
  • Get historical and forecast market sizing data, with country specific insight for 22+ of the world’s largest industries
  • Track sector dealmaking activity, to view aggregate volumes, specific deals and top investors for all major deal types in M&A, Capital Raising, and Partnerships
  • Analyze news from GlobalData Explorer’s News Database – enable screening and alerts by industry, company, geography and news sentiment for filtered insight
  • Identify and track the key disruptive trends that are keeping the top digital thought leaders talking through social media analytics
  Consult this report now to find out how you and your company can benefit from our Explorer platform.
by GlobalData
Enter your details here to receive your free Report.

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