Hyundai reportedly suspends China plant amid political spatMarch 27, 2017 - 10:30 AMT PanARMENIAN.Net - South Korea's Hyundai Motorhas suspended production at one of its Chinese factories for a week, a media report said on Sunday, March 26, fuelling concern that a diplomatic standoff may be hurting sales in the automaker's top market, Reuters reports. South Korean companies, from cosmetics firms to retailers, say they are being targeted in China because of Beijing's objections to a planned deployment of the U.S. Terminal High Altitude Area Defense (THAAD) system in South Korea. China worries the system's powerful radar can penetrate its territory. News of Hyundai's China plant closure, reported by online media ChosunBiz, drove shares of the company down as much as 3 percent on Monday. At 0400 GMT, the shares had recovered to trade down 1.5 percent. Shares in Hyundai's affiliates, Kia Motors (000270.KS) and Hyundai Mobis (012330.KS), also traded lower. ChosunBiz reported Hyundai's China joint venture had told suppliers it would idle the factory in Cangzhou, Hebei Province from March 24 to April 1, to check its production line. The move comes less than six months after the plant started operations. Hyundai has three other factories in China. No further details were available. A Hyundai spokesperson did not have immediate comments, but industry officials and analysts say the suspension may be aimed at bringing down inventories given slowing sales in China, due to political tension and competition from local players. Ko Tae-bong, an analyst at Hi Investment & Securities, said Hyundai's March sales in China may have fallen year-on-year due to the political spat, after gaining in January and February. Hyundai officials have previously said the company's business ties with Chinese companies mean they were less likely to be the main target of any punishment. The company's China operations are a 50-50 joint venture with state-owned Beijing Automotive. Top stories Azerbaijani President Ilham Aliyev arrived in Moscow on April 22 to hold talks with Russian counterpart Vladimir Putin. Authorities said a total of 192 Azerbaijani troops were killed and 511 were wounded during Azerbaijan’s offensive. In 2023, the Azerbaijani government will increase the country’s defense budget by more than 1.1 billion manats ($650 million). The bill, published on Monday, is designed to "eliminate the shortcomings of an unreasonably broad interpretation of the key concept of "compatriot". Partner news | Welcome to CaseKey 2024. Byblos Bank Armenia firmly stands by future innovators Strategic business cases, invaluable experience, innovative approaches and more than 25 events are in store for the participants of CaseKey 2024. Macron honors Charles Aznavour on 100th anniversary French President Emmanuel Macron has paid tribute to the memory of French-Armenian crooner Charles Aznavour. Blinken says U.S. reviewing a number of aid requests from Armenia He said the U.S. is reviewing the requests to determine what more it can do to increase its assistance to Armenia. At least 2 CSTO members participated in preparing 44-day war against Armenia – PM Nikol Pashinyan has declared that at least two CSTO member countries participated in preparations for the 44-day war against Armenia. |