Ssangyong Motor in crisis, again disrupted operation of Pyeongtaek plant due to payment problem of partner companies

Input 2021.02.02 11:55

Suffering a serious liquidity crisis Ssangyong Motor (003620)The factory is being shut down again as it fails to pay the outstanding payments of its partner companies.

According to the industry on the 2nd, the assembly line of Ssangyong Motor’s Pyeongtaek plant is being repeatedly operated and stopped by stopping the supply of parts, requesting payment of outstanding payments from parts and partners. An official from Ssangyong Motors explained, “The factory operation was not completely stopped and parts supply was not smooth, so the line is operating as soon as parts are received.”

After discussions at a meeting with Ssangyong Motors on the 28th of last month, Ssangyong Motor’s partner companies’ Emergency Response Committee agreed to enter into the P plan for the normal operation of Ssangyong Motors and continued to supply parts. However, it is known that some of the major parts makers and small companies are refusing to supply parts as a result of the decision of the non-subcommittee in which 16 partners participated as representatives.

Earlier, Ssangyong Motor’s Pyeongtaek plant was shut down for two days after a major parts maker requested cash payment and stopped supplying parts immediately after applying for corporate rehabilitation on December 21 last year.

The Ssangyong Motor Emergency Response Committee is scheduled to send out an official letter for participation in the P plan to 350 suppliers on the same day and hold an emergency response meeting to request that the Ssangyong Motor plant resume delivery to resume operation. Korea Development Bank, the main creditor bank of Ssangyong Motor, plans to disclose its position on the Ssangyong Motor crisis at 2 pm on the same day.