Koreans to invest $50 mln to Kaliningrad Region automotive cluster

AVTOTOR and Hyundai Motor Company have signed a plan on launching a full-cycle facility to manufacture commercial HD78 trucks based on the company's capacities in the Kaliningrad Region

Koreans to invest $50 mln to Kaliningrad Region automotive cluster

AVTOTOR and Hyundai Motor Company have signed a plan on launching a full-cycle facility to manufacture commercial HD78 trucks based on the company's capacities in the Kaliningrad Region. The project contemplates the preparation of production lines on Avtotor's site to make Hyundai НD78 trucks on a full-cycle basis. The creation of additional capacities, including welding and painting strings, would enable outputting not less than 16 thousand trucks annually.

Avtotor's history of cooperation with the South-Korean manufacturer dates back to 2011. It was then when the first truck of the brand rolled off the production line. Hyundai branded cars started to be massively output in a year. Today, the product portfolio includes models with a wide range of setup features having a good track record in the Russian market.

The share of Hyundai branded trucks in the Russian market is now 5 %. Virtually all of them are manufactured at Avtotor. The plant's management intends to invest $50 million in the new project jointly with the South Korean partners.

Full-cycle mass production is going to be launched in early 2018. The plans extending to the next year provide for the output of about 5 thousand trucks. They will be implemented not in Russia and CIS countries only but also in the countries of Middle East and Africa. The plant is ready to increase its output should it be necessary.