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SsangYong Motor to sell plant site in rehabilitation efforts

Ssangyong Motor’s factory in Pyeongtaek, Gyeonggi Province, on June 8. (Yonhap)
Ssangyong Motor’s factory in Pyeongtaek, Gyeonggi Province, on June 8. (Yonhap)

SsangYong Motor, a debt-ridden automaker, decided to sell the site of its plant in Pyeongtaek as part of self-rescue efforts, the local government said Saturday.
The company has been under court receivership since April, as its Indian parent, Mahindra & Mahindra, failed to secure a buyer for its 75 percent stake in the automaker.
The city government of Pyeongtaek, 70 kilometers south of Seoul, said it has signed a memorandum of understanding with the court-appointed manager of SsangYong and its labor union, regarding the sale of the site, which measures 850,000 square meters and is valued at 900 billion won (US$786 million). The plant was constructed in 1979.

The company will build a new factory in Pyeongtaek, and the city will provide administrative support in the process of construction and relocation, the city said.
"We will actively support SsangYong Motor to grow into a global company that contributes to the development of the local economy,"
Jung Jang-seon, mayor of Pyeongtaek, said.
Chung Yong-won, court-appointed administrator, said the new plant will focus on green and self-driving cars as a base for the company's long-term survival.
SsangYong opened an auction for its majority stake on June 28.

EY Han Young, an accounting firm in charge of the sale process, issued a public notice that it will accept letters of intent from potential buyers until the end of July and conduct preliminary reviews on them in August. (Yonhap)