The project will cost almost 13 billion rubles.
Hyundai is to invest almost 13 billion rubles (over $200 million) into building an engine assembly factory in St. Petersburg, according to the statement the company representatives made at a meeting with the city government.
It is planned that the new facility will start operating in 2021 and will produce 233 thousand engines. At a later stage, the production capacity of the factory is to increase up to 330 thousand engines per annum. Every fifth engine will be exported to Europe or Asia.
The city government can grant the company tax benefits. According to St. Petersburg Vice Governor Yevgeny Yelin, at present a draft bill on investment tax rebate is currently being finalized. The new regulation will allow to deduct investments from reported profit.
Earlier, the city government and the Russian office of Hyundai signed a special investment agreement for a period until 2027.