Staria Production at Hyundai Motor's Jeonju Plant... Expected Boost to Local Economy

Welcoming Voices Continue Over Transfer of Ulsan Plant Production to Jeonju Plant

[Wanju=Asia Economy Honam Reporting Headquarters, Reporter Kim Han-ho] As Hyundai Motor Company’s labor and management agreed to transfer part of the Staria production volume from the Ulsan Plant 4 to the Jeonju Plant, which is facing a shortage of work, expectations for regional economic revitalization in Jeonbuk are rising.

In a situation already struggling due to sluggish commercial vehicle sales and the COVID-19 pandemic, the production of small commercial vehicles at the Jeonju Plant is expected not only to alleviate employment insecurity among employees but also to increase sales for partner companies and nearby stores, as well as local taxes.

According to the Hyundai Motor Branch of the Korean Metal Workers’ Union on the 8th, the 4th Employment Stability Committee of Hyundai Motor labor and management agreed on the 7th to handle some of the Staria volume (about 8,000 units annually) produced at Ulsan Plant 4 at the Jeonju Plant, and to increase production of Palisade backorder volume at Plant 4.

Accordingly, the Jeonju Plant, a world-class commercial vehicle factory, will produce small commercial vehicles for the first time in 26 years since its opening in 1995.

As this news spread, welcoming reactions have been pouring in from Jeonbuk, including Wanju County.

Local National Assembly member Ahn Ho-young said, “The volume allocation is an achievement made after numerous twists and turns and will become a milestone for a win-win model between Hyundai Motor management and labor unions.” He added, “We will vigorously accompany efforts to ensure employment stability and coexistence with partner companies during the rebuilding process for future hydrogen vehicle mass production.”

Ahn previously held a meeting with Hyundai Motor executives on September 29, strongly requesting the transfer of Staria production volume.

Ahn emphasized, “The Jeonju Plant should be developed as a core production base for hydrogen commercial vehicles in addition to Staria production. Since we have launched a labor-management-government council to revitalize commercial vehicles, we will actively promote necessary legislative amendments for industrial infrastructure establishment, partner company R&D support, and system improvements.”

Park Sung-il, Wanju County Governor, also said, “The transfer of Staria volume will be a new starting point for regional development, harmony, and coexistence.” He added, “With this transfer as an opportunity, the commercial vehicle factory production line will operate actively, and through hydrogen commercial vehicle production, we will spare no support to establish it as a world-class factory.”

In Wanju County, various social organizations raised banners to welcome the transfer of volume to the Jeonju Plant.

The Jeonbuk Provincial Council also declared in a statement, “Thanks to the generous cooperation of labor and management, the livelihood of about 5,300 Jeonju Plant employees, the employment stability of 160 partner companies, and the Jeonbuk economy are expected to benefit greatly.” They pledged, “If unexpected difficulties arise in Ulsan in the future, the Provincial Council will take the lead in responding.”

Meanwhile, the maximum production capacity of Hyundai Motor’s Jeonju Plant is about 105,000 units annually, but due to sluggish commercial vehicle sales and the COVID-19 pandemic, it has recently decreased to around 35,000 to 40,000 units.

Wanju=Honam Reporting Headquarters, Reporter Kim Han-ho stonepeak@asiae.co.kr

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