Hyundai Motor Temporarily Suspends Plan to Build LNG Cogeneration Plant at Ulsan Factory

Unions and Civic Groups Oppose... Labor: "Management Holds Back Due to Labor-Management Conflict"

Hyundai Motor Ulsan Plant Myeongchon Main Gate. (Image source=Yonhap News)

[Asia Economy Reporter Moon Chaeseok] Hyundai Motor Company has reportedly put on hold its plan to build a liquefied natural gas (LNG) combined heat and power plant at its Ulsan plant as of the 2nd.

Hyundai Motor had planned to produce about 70% of its electricity consumption through the construction of the LNG combined heat and power plant. However, the Hyundai Motor labor union has opposed the project, arguing that the plan lacks employment and deployment plans for union members in the construction and operation of the LNG plant, thus having no employment inducement effect. The union stated, "The company has conveyed its position to postpone the construction of the power plant citing labor-management conflicts as the reason."

The labor and management have been negotiating since their first wage negotiation meeting on the 10th of this year, addressing employment stability issues. Recently, domestic and international civic groups have criticized Hyundai Motor's LNG power plant construction plan, claiming that methane is released in large quantities into the atmosphere during the use of LNG power plants, causing a greenhouse gas effect.

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