09/12/2008 15h15
Hyundai and 20 suppliers will invest US$ 929 million in SP
O Estado de S. Paulo - 09/12/2008
Managers of the Hyundai Motors, South Korea's biggest car assembler, will arrive in São Paulo next week to sign a letter of intent for the construction of a plant of small cars in the city of Piracicaba (SP) with the State Government. The initial investment in the project is budgeted at US$ 600 million. A group of 20 part suppliers that also intends to get installed in the region may invest another US$ 250 to US$ 300 million. The beginning of the operation is foreseen for the end of 2010. At first, the signature is scheduled for Thursday, but there may be changes because of details that are being concluded. At the end of the year, probably in December, South Korea's President Lee Myung-bak and Hyundai's World President Chung Mong-Koo should participate in the ceremony of launching of the plant's fundamental stone. According to data obtained from people that follow the negotiations for the group's arrival in Brazil, in the first stage of the project the plant will have capacity for 100 thousand vehicles per year. The plan foresees the generation of 1.5 thousand jobs for the car assembly and 2.5 thousand ones for auto parts. Last week, 40 agents of 20 manufacturers of auto parts in Korea, among which suppliers of brakes and transmissions, were in São Paulo to analyze the feasibility of local installation. They want to feed Hyundai's assembly line, but they also intend to supply other car assemblers. Parallel to the installation of the assembly unit, the Hyundai Corporation, which comprises other activities of the corporation, also studies entering the Country, informed Gi-Seob Kim, managing officer of the Latin-American division of the group that is going to install an office in São Paulo.
