Korean automaker Hyundai Motor Company HYMTF reportedly plans to cease operations at two parts forging plants in Ulsan, South Korea, by next year, marking a move in its strategy to transition from petrol-powered vehicles.
These plants, established in 1991 and focused on producing engine parts, are scheduled to close in January and October, respectively, reported Reuters.
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This step aligns with Hyundai Motor's commitment to reducing the share of internal combustion engines in its vehicles, favoring the production of electrified vehicles instead.
The company is exploring options for outsourcing some of the engine components production currently handled at these facilities, the report added.
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Hyundai's pivot towards electric vehicles (EVs) was further underscored by the recent commencement of construction on a new 2 trillion won plant dedicated to EV production in South Korea.
Price Action: HYMTF shares closed higher by 0.37% at $41.50 on Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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