Kazakhstani company is going to buy Hyundai factory in Russia

South Korean automobile giant Hyundai is planning to sell its factory in Saint Petersburg to an undisclosed company from Kazakhstan, the Russian news agency Interfax reported, citing Korean TV channel MBC.

While covering the news, the TV channel showed a building with the Astana Motors logo on it. However, there was no direct indication of who is going to buy the asset, although MBC said that the two sides have reached the final stage of negotiations.

Astana Motors denied that it is planning to buy the factory. The company highlighted that it has been focusing on the development of its business in Kazakhstan. For instance, it is going to start constructing a new facility to produce spare parts for Hyundai vehicles.

According to MBC, Russian authorities are going to announce their decision on the deal on April 27. Under the agreement, the seller has the right to buy the factory back at any time.

In early April, the Russian newspaper Kommersant wrote that Denis Kolomatsky, a former top executive at Astana Motors, was interested in the Hyundai factory in Saint Petersburg. There were speculations that Vostok-Auto Management by Kolomatsky would export assembled cars and SKD to Kazakhstan.

In December 2022, the factory restarted its production of bodies for vehicles assembled in Kazakhstan. The facility temporarily suspended its operation in March 2022 due to the disruption of the supply chain.