Hyundai has completed the purchase of the former General Motors plant in St. Petersburg, Russia, according to a new report from Reuters.
The Korean automaker agreed to purchase the GM St. Petersburg plant in July after first expressing interest in the property back in 2019. The sale was then subject to approval from the Russian anti-trust body, which gave the transaction the green light to proceed in early August. Hyundai spokeswoman Yulia Tikhonravova confirmed the transaction was now fully complete in a statement released this week.
The former GM site will be Hyundai’s second assembly plant in St. Petersburg, joining the automaker’s existing plant in the Kamenka industrial area of the city. The Kamenka plant builds the Hyundai Solaris and Kia Rio subcompact cars, as well as the Hyundai Creta subcompact crossover. The GM St. Petersburg plant has an annual production capacity of around 100,000 vehicles, while the Kamenka plant can produce up to 200,000 vehicles a year.
GM completed construction on the St. Petersburg plant in 2008, which was built at a cost of around $300 million USD. The facility previously produced the Chevrolet Cruze, Opel Astra and global Chevrolet Trailblazer, but was shut down in 2015 after GM decided to pull out of mainstream mass-market segments in Russia.
Hyundai/Kia sold a total of 404,710 vehicles in Russia last year, making it the best-selling automaker in the country. The automaker has also seen strong interest for its affordable Hyundai Creta subcompact crossover in Russia, which is marketed as the Venue in the United States and Canada, and hopes the vehicle will continue to help it grow its market share and profitability in the region.
While GM no longer operates in any mainstream segments in Russia, the Cadillac brand is still active in the country. Cadillac vehicles destined for consumption in Russia are imported into the country from other GM plants.
Hyundai has not said when it expects to begin producing vehicles at the former GM St. Petersburg plant.