Ssangyong Motor "Accelerate Eco-Friendly Vehicle Business by Relocating Factory"

Ssangyong Motor and Pyeongtaek City signed a joint cooperation memorandum of understanding (MOU) on the 9th for the relocation of Pyeongtaek City and the construction of the Pyeongtaek plant.

Photo by Ssangyong Motor

[Asia Economy Reporter Ki-min Lee] Ssangyong Motor, currently undergoing corporate rehabilitation procedures, announced on the 11th that it will sell its Pyeongtaek plant and build a new factory on a different site to produce eco-friendly vehicles. This move is interpreted as an effort to prepare for a transition to the eco-friendly vehicle business, securing future growth engines while enhancing investment attractiveness.

On the same day, Ssangyong Motor stated, "We have signed a joint cooperation agreement with Pyeongtaek City for the relocation of the Pyeongtaek plant and the construction of a new factory," adding, "The purpose is to promote the business transition to eco-friendly vehicles."

According to the agreement, Ssangyong Motor will sell the current plant site and build a replacement factory elsewhere within Pyeongtaek to relocate.

The signing ceremony held at Pyeongtaek City Hall on the 9th was attended by Jeong Jang-seon, Mayor of Pyeongtaek; Hong Ki-won, Democratic Party member of the National Assembly (Gyeonggi Pyeongtaek City Gap); Yoo Ui-dong, People Power Party member of the National Assembly (Gyeonggi Pyeongtaek City Eul); Hong Seon-ui, Chairperson of Pyeongtaek City Council; Kim Jae-gyun, Gyeonggi Province Assembly member; Jeong Yong-won, Ssangyong Motor administrator; and Jeong Il-gwon, labor union chairman.

Pyeongtaek City will support the smooth progress of the project by providing administrative support such as permits and approvals necessary for project implementation and timely supply of industrial land.

Ssangyong Motor also pledged to actively work on developing and utilizing the new site and developing the current site to ensure the relocation within Pyeongtaek proceeds without any setbacks. To prevent production stoppage due to the plant relocation, the company plans to proceed with the sale of the current site and the construction of the new factory simultaneously.

The new factory will be built as a dedicated advanced future vehicle plant producing eco-friendly and autonomous vehicles to establish a long-term survival foundation. It is expected to contribute to regional economic development through the realization and creation of jobs in cooperation with the local community.

Furthermore, the parties involved in the Pyeongtaek plant relocation agreement plan to form and operate a working-level council to efficiently promote cooperation and mutually collaborate on detailed matters. Ssangyong Motor, which has been producing internal combustion engine vehicles, urgently needed to devise measures to strengthen manufacturing competitiveness and respond to changes in the automotive industry ecosystem, including eco-friendly and autonomous vehicles.

Mayor Jeong Jang-seon said, "The signing of the cooperation agreement for the Pyeongtaek plant relocation will serve as a cornerstone for the mutual growth and new start of Pyeongtaek City and Ssangyong Motor," adding, "We will actively support Ssangyong Motor to grow into a global company that contributes to regional economic development and plants hope in Pyeongtaek."

Administrator Jeong Yong-won also stated, "The relocation of the Pyeongtaek plant and the construction of a dedicated eco-friendly vehicle factory are part of Ssangyong Motor’s mid- to long-term competitiveness securing plan for the future," and added, "We will do our best to ensure that the plant relocation and development project proceed as quickly as possible through joint cooperation with Pyeongtaek City."

Meanwhile, after passing the self-rescue plan, Ssangyong Motor issued a sale announcement on the 28th of last month to attract competitive investors and has entered the full-scale merger and acquisition (M&A) process.

This content was produced with the assistance of AI translation services.