Ssangyong Motor Holds Meeting with Partners "Will Successfully Promote M&A"

Ssangyong Motor held a meeting on the 24th at the Pyeongtaek Plant headquarters with the commercial creditors and representatives of major parts suppliers to discuss early termination of the rehabilitation process through successful M&A promotion and joint growth plans with suppliers through the successful development of new vehicles such as the J100. Ssangyong Motor officials and parts suppliers are engaged in conversation at the meeting.

[Asia Economy Reporter Changhwan Lee] Ssangyong Motor announced on the 25th that it held a meeting with the commerce creditors and representatives of major parts suppliers to discuss plans for mutual growth with suppliers through the successful promotion of mergers and acquisitions (M&A).

The meeting, held yesterday at the Pyeongtaek plant headquarters, was attended by Ssangyong Motor administrator Jeong Yong-won and representatives from commerce creditors and major parts suppliers including Digen, Semyung Enterprise, Gyeonggi Industry, and Neotek.

Through the meeting, Ssangyong Motor shared with suppliers the progress of the M&A, new car development plans such as the J100 and KR10, and plans for the construction of an eco-friendly vehicle factory. The company also requested active cooperation from suppliers to ensure smooth parts supply and the successful launch of the J100.

The company explained that, so far, 11 companies have submitted letters of intent and are conducting due diligence, with many prospective buyers participating, raising expectations for a successful M&A.

Ssangyong Motor emphasized that it plans to request government support to enable loans from the Korea Credit Guarantee Fund using the suppliers’ Ssangyong Motor commerce receivables as collateral, in order to provide practical and effective support to alleviate suppliers’ financial difficulties.

Administrator Jeong Yong-won said, "Despite difficulties, parts supply has resumed thanks to the active cooperation of suppliers, and sales in the second quarter increased by 16.5% compared to the first quarter, showing signs of recovery. Although the company is currently facing challenges, through steady implementation of self-help efforts and successful M&A promotion, we will surely transform into a company capable of sustainable growth and create a bright future for mutual growth with parts suppliers."