Ssangyong Motor Pyeongtaek Plant. News 1
Ssangyong Motor’s Pyeongtaek plant stopped from the 1st due to the cut off supply of parts from suppliers. This is the second time the factory was elected since the application for corporate rehabilitation procedures (legal management) on the 21st of last month.
According to the automobile industry and Ssangyong Motors on the 2nd, the assembly line at the Pyeongtaek plant was stopped because some of the subsidiaries of large companies and small and medium-sized companies among suppliers declared’stop supply of parts’. Choi Byung-hoon, senior vice chairman of the Ssangyong Motor Emergency Response Committee, which is made up of 350 Ssangyong Motor suppliers, said, “Some suppliers requested cash payments for the delivery price paid in the November-December period. An official from Ssangyong Motors said, “It wasn’t completely shut down, but it turned around and stopped. Today (2nd), I think I will know (whether or not the factory is in operation) by looking at the situation.”
On the 29th of last month, Ssangyong Motor and B. Commission agreed on the P plan (preliminary rehabilitation plan) and moved quickly to proceed with the procedure earlier this month. In addition, it has agreed to postpone the payment of payments for delivery in November and December. However, some large corporate affiliates and small and medium-sized enterprises that are not part of the non-subcommittee are refusing this. Prior to this, even when Ssangyong Motor applied for legal management on the 21st of last month, some of the subsidiaries of large companies such as Hyundai Mobis and Continental requested cash payment for the delivery price and did not supply parts for about a week.
Ssangyong Motor has been using the P plan as a rehabilitation alternative after negotiations for the sale of shares between the major shareholder Mahindra and US automaker HAAH Automotive Holdings, a candidate for the acquisition of Ssangyong Motors, broke down. The P plan, led by creditors with the consent of the court, is possible only when half of the creditors agree. According to the industry, it is more than half of the combined borrowings from Korea Development Bank (190 billion won), including 400 billion to 500 billion won for suppliers. For Ssangyong Motors, the agreement of suppliers along with Saneun is essential, but if the suppliers stop supplying parts, the P plan will also be disrupted.
On the same day, the non-Captain will send out an official letter for participation in the P plan to 350 suppliers. In addition, an emergency countermeasure meeting will be held this afternoon to encourage “Resume delivery to resume operation of the Ssangyong Motor plant.” After the meeting, he plans to visit the Industrial Bank to appeal for Ssangyong Motor support. Senior Vice Chairman Choi Byung-hoon said, “We have to save (Ssangyong Motor) once, and we will appeal to the rest of our business partners to join us.”
Korea Development Bank plans to disclose its position on the Ssangyong Motor crisis at 2 pm on the same day. Earlier, on the 12th of last month, Sangeun Lee Dong-geol, chairman of Sang-eun Lee, announced that as a prerequisite for Ssangyong Motor’s support, the union’s promise of no dispute and the timing of the agreement should be adjusted from one year to three years now.
Reporter Kim Young-joo [email protected]