Construction of Hyundai car factory begins in Kazakhstan

Business Materials 22 April 2019 14:17 (UTC +04:00)

Baku, Azerbaijan, Apr. 22

By Fakhri Vakilov – Trend:

A ground-breaking ceremony of Hyundai Trans Kazakhstan plant was held during the visit of President of South Korea Moon Jae-In to Almaty, Trend reports via Kazakh media.

The plant will be built by Astana Motors in the industrial zone of the city of Almaty with the support of the Ministry of Industry and Infrastructure Development of Kazakhstan.

The capacity of the enterprise will be 30,000 cars per year at the first stage. At the second stage, the production will increase up to 45,000 cars per year. This will provide the Kazakhstan market with high-quality and affordable Hyundai cars allowing their export to the CIS countries.

The total investment in the project amounts to 25 billion tenge. In addition to the the company own funds, borrowed funds will be raised on commercial terms.

The opening of the plant will create up to 700 new jobs. The plant infrastructure includes welding, painting, assembly, production of plastic panels and a quality control department. It will be equipped with the latest technological equipment manufactured in South Korea and Japan.

The entire Hyundai lineup will be assembled at the plant. At the first stage, the production of a full cycle of one of the passenger models of the Hyundai line will be launched to be followed with the launch of a line for the production of Creta models. The localization of assembly up to 50 percent is reached thanks to industrial cooperation with the countries of the EEU.

In the future, the construction of a plant for the production of automotive components is planned to increase the level of localization in Kazakhstan.

As expected, the first car will come off the assembly line in 2020.

($1-379.61 tenge on Apr. 22)

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