On the 23rd, Ssangyong Motor announced that it would stop operating the Pyeongtaek plant for two days after consultation with labor-management due to a production disruption due to the refusal of supply of some large parts suppliers.
Five companies, including LG Hausys, Continental Automotive, Borg Warner Ochang, S&T Heavy Industries, and Hyundai Mobis, are refusing to deliver, and some of them are known to have requested cash instead of bills as a return for delivery due to concerns about Ssangyong’s liquidity deterioration.
On the 21st, Ssangyong Motor applied for corporate rehabilitation to the Seoul Rehabilitation Court, and also applied for an autonomous restructuring support (ARS) program that withholds the start of the rehabilitation process for up to three months. For this reason, the court received a preservation disposition prohibiting the repayment and provision of security for monetary debt during this period. However, the exception is the reimbursement for commercial bonds related to continuous and normal business activities.
Ssangyong Motor plans to ask each partner to cooperate and participate as ARS can be successfully progressed only when normal production and sales activities are maintained.
Ssangyong Motor’s Pyeongtaek plant produces Korando, Tivoli, G4 Rexton, and Rexton Sports on two assembly lines. The annual production capacity is about 250,000 units, but the production volume from January to November of this year was 97,000 units, which was less than half. Ssangyong Motor, which temporarily shut down its factory in the aftermath of the spread of Corona 19 in the first half of last year, is expected to suffer another production disruption of 1,300 units over two days.
On the same day, Ssangyong-cha president Ye Byung-tae, who visited the Seoul Rehabilitation Court to interrogate the representative, met with a reporter and said, “We talked about the company’s situation, including attracting new investors and negotiating with creditors. “He said.
He added, “It is a situation where we have to intermittently stop the operation of the plant due to the supply issue of parts makers.”
Meanwhile, Ssangyong Motor’s labor union said, “I reflect on myself and self-sufficiently about going through the rehabilitation procedure again in 2020, when all of the dismissed workers who ended the pain of 2009 were reinstated.”
[박윤구 기자]
[ⓒ 매일경제 & mk.co.kr, 무단전재 및 재배포 금지]