Export insurer to cover Hyundai's Russia auto plant

By Lee Joon-seung
SEOUL, Aug. 12 (Yonhap) -- South Korea's state-run export insurer said Wednesday
that it will provide coverage for Hyundai Motor Co. to build a new automobile
plant in Russia.

The 180 million euro (US$255 million) coverage arrangement will help the
country's largest carmaker to build a new production base in St. Petersburg and
win financing to purchase necessary manufacturing equipment, the Korea Export
Insurance Corp. (KEIC) said.
"Hyundai used the KEIC deal to secure funds at favorable rates from four leading
lenders like ING, Societe Generale, Natixis and West LB, despite lingering
uncertainties in the global financial market," a spokesman for the insurer said.
Once complete, Hyundai expects to produce 150,000 cars every year with 10 local
parts suppliers also moving to the Russian city.
The plant may generate 500 million euros worth of fresh exports of parts and
components for South Korea per year.
Russia, with its large population and earnings generated by its plentiful oil and
gas reserves, is emerging as one of the top five auto markets in the world, with
carmakers around the world scrambling to set up local operations.
yonngong@yna.co.kr
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