Web Stories Saturday, February 24

SEOUL :Beijing Hyundai Motor sold its Chongqing plant late last year for 1.62 billion yuan ($225 million) as part of efforts to optimise China operations, Hyundai Motor said in a statement on Wednesday.

The buyer was Yufu Industrial Complex Construction Co, Yonhap news agency reported late on Tuesday.

Reuters was unable to reach Yufu for comment. Yufu, which is backed by the Chongqing city government, is the landlord of a local industrial park.

Beijing Hyundai had put the plant up for sale around August last year as the South Korean automaker rejigged its strategy in China amid fierce price competition and slowing demand.

The final sale price is less than half the starting price of 3.68 billion yuan that Hyundai had initially sought.

The Chongqing plant, a joint venture with Beijing Automotive Group Co, started production in 2017 with an annual capacity of 300,000 units.

($1 = 7.1902 yuan)

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