Ssangyong Motor Holds Meeting for Mutual Development with Local Community

A meeting held at Ssangyong Motor's Pyeongtaek plant.

[Asia Economy Reporter Changhwan Lee] Ssangyong Motor announced on the 18th that representatives of the "Pan-Citizen Movement Headquarters for the Early Normalization of Ssangyong Motor," a coalition of 30 civic groups in the Pyeongtaek area, visited the Pyeongtaek plant and held a meeting with the administrator.

The meeting held in the morning was attended by Lee Boyoung, chairman of the Pyeongtaek Chamber of Commerce and Industry and co-head of the Pan-Citizen Movement Headquarters, Lee Donghun, chairman of the Pyeongtaek City Development Council, as well as Ssangyong Motor administrator Jeong Yongwon and Lee Sanggu, head of the Management Support Headquarters.

Ssangyong Motor explained that, prior to the approval of the rehabilitation plan, 11 companies have submitted letters of intent for mergers and acquisitions (M&A) so far.

Preliminary due diligence, including status assessment through a virtual data room, plant visits, and meetings with management, is scheduled to proceed until the 27th of this month, and the submission of acquisition proposals for selecting the preferred negotiation partner will close on the 15th of next month, the company added.

Administrator Jeong Yongwon emphasized, "Despite some concerns, as the automotive industry paradigm shifts from internal combustion engine vehicles to eco-friendly vehicles, there are many interested acquirers aiming to seize business opportunities, raising expectations for successful M&A," adding, "We will successfully complete the M&A with the optimal acquirer and fulfill our responsible role as a member of the local community."

He continued, "Regarding the development of Ssangyong Motor’s current site and the construction plan for a new plant, we are conducting practical consultations with Pyeongtaek City, Gyeonggi Province, and related organizations," and stated, "The selection of the relocation site will be carefully reviewed by the company considering location conditions for future automotive research and development and production plants, logistics, and economic feasibility before making a final decision."

However, he noted, "Since various procedures such as administrative processes by related agencies including Pyeongtaek City and gathering opinions from the prospective acquirer must be followed, it will take some time to finalize," adding, "We will do our best to reach a conclusion as soon as possible and transform into a company capable of sustainable growth to contribute to the development of the local economy."