DRB to invest 1 bln rubles in production of Hyundai car parts in Leningrad region

TASS Russian News Agency | Sep 30, 2020 at 5:33 PM

ST. PETERSBURG, September 30. / TASS /. The DRB RUS company (the Russian subdivision of the South Korean company DRB) will build a plant in the Leningrad Region for the production of components for Hyundai cars with an investment worth 1 billion rubles, according to the agreement on cooperation that signed by Governor Alexander Drozdenko and Director General of DRB RUS Kim Soneb, the press service of the regional government said on Wednesday.

"An agreement on cooperation of a project to create a plant for Hyundai parts was signed as part of the Baltic Regional Investment Forum. The Russian division of the South Korean company DRB plans to place a new production in the Sverdlovsk settlement of the Vsevolozhsk region. The volume of investments is estimated at 1 billion rubles, the number of jobs created will equal 150," the press release said.

The investor acquired the property complex of the former Nevsky Ceramic Plant, and it will be redesigned for a new production.

The DRB RUS LLC project for the production of Hyundai parts is being implemented in accordance with the Strategy for the Development of the Automotive Industry of the Russian Federation for the period up to 2025. It is part of the localization program for car manufacturers.

The Hyundai plant near St. Petersburg was opened in 2010. It is the second largest automaker in Russia, producing Hyundai Solaris, Hyundai Creta and Kia Rio models. For nine years, the plant has produced more than 1.7 million vehicles.

Baltic Regional Investment Forum BRIEF-2020

Alexander Drozdenko signed a number of cooperation agreements at the forum. An agreement was signed with the TRIER-SPB company, which will build a complex for the production of raw materials for the confectionery and bakery industry in the Greenstate industrial park in the Lomonosov region, the investment amount is more than 500 mln rubles. In addition to the production of raw materials, the investor plans to build a training center. The TRIER-SPB company is a representative of the German concern IREKS GmbH, founded in 1856.

The Governor also signed an agreement with one of the largest fish producers in Russia, the Baltic Coast company. The enterprise will build a distribution center for raw materials and finished products in the Lomonosov district of the region. The volume of investments in the project is 427 mln rubles, the center will provide jobs for more than 100 people.

The Baltic Regional Investment Forum has become a key international event for the Leningrad Region amid the pandemic. The event was held in St. Petersburg, and more than 700 people from 10 countries took part in it, for whom practical sessions on export and localization, face-to-face and online format sessions were organized. At the forum, the Governor of the Leningrad Region signed a number of investment agreements with companies from various industries. The organizers of the forum are the Agency for Economic Development of the Leningrad Region and the Center for Industrial Development of the Leningrad Region, the co-organizer is the Russian-German Foreign Trade Chamber.