MS Autotech buys GM’s South Korean facility in Gunsan

Apr 15, 2019   OEM

GM has sold its Gunsan facility to local South Korean parts supplier Myoungshin, a unit of MS Autotech. The company plans to contract manufacture EVs at the site.

According to regulatory filings, the deal was closed at KRW113 billion ($99.5 million). The deal came after GM closed down one of its four facilities in South Korea in May last year. Thousands of jobs had been lost due to the closure which culminated the American auto maker being bailed out by the South Korean government.
Myoungshin. a supplier to tooth Tesla and Hyundai, is a part of a consortium which is investing KRW200 billion ($176 million) to start manufacturing EVs in the country. They aim to annually manufacture 50,000 EVs by 2021 and gradually increase the number 150,000 by 2025. The plant is expected to begin operations by 2021.
It is being reported that the plant will contract manufacture EVs for a host of Chinese companies and start-ups. There also have been rumours that Chinese EV maker Byton would take advantage of the contract manufacturing at this site to boost its production.
Myoungshin will acquire the plant in full with the complete handover date set to 29 June. Members of the consortium which include Sejong Industrial, a manufacturer of exhaust systems, and Future Mobility, Byton’s parent company, are also expected to get on-board.

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