ID :
35777
Mon, 12/15/2008 - 18:43
Auther :
Shortlink :
https://www.oananews.org//node/35777
The shortlink copeid
Ssangyong Motor wants to shut down sole plant for 3 weeks
(ATTN: UPDATES throughout with union saying Ssangyong Motor wants to close plant from Wednesday for three weeks; TRIMS)
SEOUL, Dec. 15 (Yonhap) -- Ssangyong Motor Co., the South Korean unit of China's Shanghai Automotive Industry Corp., wants to shut down its sole plant from Wednesday for three weeks amid a sharp slump in sales and a prolonged liquidity crisis, union officials said Monday.
If idled, it would be the third time this year that the troubled Ssangyong has
suspended production at its lone plant in the port city of Pyeongtaek, about 70
kilometers south of Seoul.
In a newsletter posted on its Web site, Han Sang-kyun, leader of the Ssangyong
union, indicated the planned plant shutdown would meet strong resistance.
"If the management pushes ahead with the shutdown, we will fight it out by
mobilizing every possible means," Han said in the statement, calling the company
executives and their Chinese parent "masters of excuses."
Cha Ki-woong, a spokesman at Ssangyong, said the company has been still in talks
with the union to win support for the plant shutdown.
"Talks are still underway and no decision was made yet," Cha said by telephone.
In May and June, Ssangyong halted production at one of its two assembly lines at
the Pyeongtaek plant for six weeks and another three weeks from July 31 as
vehicle sales tumbled.
The troubles at Ssangyong, South Korea's smallest automaker, were deepening as
the union warned against cutting employee benefits and idling the sole assembly
plant.
Ssangyong's Chief Executive Officer Choi Hyung-tak has asked SAIC to inject fresh
capital to help Ssangyong weather the crisis.
In the third-quarter of this year, Ssangyong lost 28.2 billion won (US$21.2
million), marking its fourth consecutive quarterly loss. Last month, the
automaker's sales plummeted 63 percent from a year earlier to 3,835 units.
Early this month, Choi of Ssangyong admitted the company's cash reserves were
fragile, and added the automaker may face "a critical period" early next year.
The Chinese state-run SAIC acquired a 51-percent stake in Ssangyong for $500
million in 2004.
(END)
SEOUL, Dec. 15 (Yonhap) -- Ssangyong Motor Co., the South Korean unit of China's Shanghai Automotive Industry Corp., wants to shut down its sole plant from Wednesday for three weeks amid a sharp slump in sales and a prolonged liquidity crisis, union officials said Monday.
If idled, it would be the third time this year that the troubled Ssangyong has
suspended production at its lone plant in the port city of Pyeongtaek, about 70
kilometers south of Seoul.
In a newsletter posted on its Web site, Han Sang-kyun, leader of the Ssangyong
union, indicated the planned plant shutdown would meet strong resistance.
"If the management pushes ahead with the shutdown, we will fight it out by
mobilizing every possible means," Han said in the statement, calling the company
executives and their Chinese parent "masters of excuses."
Cha Ki-woong, a spokesman at Ssangyong, said the company has been still in talks
with the union to win support for the plant shutdown.
"Talks are still underway and no decision was made yet," Cha said by telephone.
In May and June, Ssangyong halted production at one of its two assembly lines at
the Pyeongtaek plant for six weeks and another three weeks from July 31 as
vehicle sales tumbled.
The troubles at Ssangyong, South Korea's smallest automaker, were deepening as
the union warned against cutting employee benefits and idling the sole assembly
plant.
Ssangyong's Chief Executive Officer Choi Hyung-tak has asked SAIC to inject fresh
capital to help Ssangyong weather the crisis.
In the third-quarter of this year, Ssangyong lost 28.2 billion won (US$21.2
million), marking its fourth consecutive quarterly loss. Last month, the
automaker's sales plummeted 63 percent from a year earlier to 3,835 units.
Early this month, Choi of Ssangyong admitted the company's cash reserves were
fragile, and added the automaker may face "a critical period" early next year.
The Chinese state-run SAIC acquired a 51-percent stake in Ssangyong for $500
million in 2004.
(END)
