The Economy

Hyundai Begins Production at New Russian Plant

Jan. 21, 2011

Company says it is the first foreign automaker to operate a full-cycle manufacturing facility in Russia.

Hyundai Motor Co. earlier this week began production at its new assembly plant in St. Petersburg, Russia.

The plant, operated by Hyundai Motor Manufacturing Russia (HMMR), will make the Solaris sedan, which is designed for Russia's climate and drivers, according to the company.

"This is a historic moment, not only for Hyundai, but for Russia, as we are the first foreign automaker to operate a full-cycle manufacturing plant here," said Gui-Il Chun, general director of HMMR, a fully owned subsidiary of Hyundai Motor Co. "We are now truly part of Russia and we will focus on supplying customers with the best products at the best time."

The plant employs more than 1,300 workers. In September, the automaker said it aims to create 5,300 jobs at the facility by 2012, together with 11 parts suppliers.

Hyundai's new assembly plant in Russia will produce the Solaris sedan.
The plant's annual capacity is 150,000 vehicles, with a production target of 105,000 units for this year. The automaker noted that the Russian facility is its sixth and most modern overseas plant, boasting a high level of automation in the production process. At several stations, for example, 85% of the welding is automated. The Russian facility is part of Hyundai's strategy to build assembly plants in the so-called BRIC countries. The automaker began construction of a third plant in China late last year and plans to break ground later this year on a plant in Brazil. Hyundai is the fifth-largest automaker by sales in Russia.

About the Author

Josh Cable | Former Senior Editor

Former Senior Editor Josh Cable covered innovation issues -- including trends and best practices in R&D, process improvement and product development. He also reported on the best practices of the most successful companies and executives in the world of transportation manufacturing, which encompasses the aerospace, automotive, rail and shipbuilding sectors.

Josh also led the IndustryWeek Manufacturing Hall of Fame, IW’s annual tribute to the most influential executives and thought leaders in U.S. manufacturing history.

Before joining IndustryWeek, Josh was the editor-in-chief of Penton Media’s Government Product News and Government Procurement. He also was an award-winning beat reporter for several small newspapers in Northeast Ohio.

Josh received his BFA in creative writing from Bowling Green University, and continued his professional development through course-work at Ohio University and Cuyahoga Community College.

A lifelong resident of the Buckeye State, Josh currently lives in the Tremont neighborhood of Cleveland. When the weather cooperates, you’ll find him riding his bike to work, exercising his green thumb in the backyard or playing ultimate Frisbee.