ID :
39673
Fri, 01/09/2009 - 00:21
Auther :
Shortlink :
http://m.oananews.org//node/39673
The shortlink copeid
Ssangyong Motor says still waiting for board's restructuring plan
SEOUL, Jan. 8 (Yonhap) -- The beleaguered Ssangyong Motor Co. said Thursday it is
still waiting for the outcome of its Chinese parent's board meeting held amid
reports of massive job cuts.
China's Shanghai Automotive Industry Corp., which owns a 51-percent stake in the
smallest automaker in South Korea, held a board meeting in the Chinese city of
Shanghai earlier in the day to finalize details of a plan to restructure
Ssangyong in return for financial support.
Unless SAIC injects fresh capital into Ssangyong, the cash-strapped automaker may
face liquidation, analysts say.
"The board meeting isn't finished yet," said Choi Nam-hyun, a spokesman at
Ssangyong in Seoul, denying a report by a Chinese Web site saying SAIC demanded
Ssangyong cut some 2,000 workers. In exchange for job cuts, the Chinese parent
would offer US$200 million in fresh capital, according to the report.
Ssangyong's chief executive officer will return to Seoul early Friday, and then
the company may announce the meeting's result, Choi said.
SAIC has been under pressure from South Korea's state-run Korea Development Bank,
the main creditor of Ssangyong, to provide fresh funds to the troubled affiliate.
About 5,200 unionized workers at Ssangyong have threatened to strike if the
Chinese parent demands Ssangyong slash its workforce.
SAIC bought a 51 percent stake in Ssangyong for $500 million in 2004, marking the
first direct investment by a Chinese company into a local manufacturer.
The acquisition has often been marred by conflicts with the union, which has
accused SAIC of stealing Ssangyong's car-manufacturing technology and failing to
honor its investment pledge.
Ssangyong reported a net loss of 98 billion won ($73.5 million) in the
January-September period last year, hit by slumping sales.
As of November last year, Ssangyong had 877 billion won in interest-bearing
debts, with total liabilities in excess of 1.46 trillion won, according to the
company's filing with the stock exchange.
(END)
still waiting for the outcome of its Chinese parent's board meeting held amid
reports of massive job cuts.
China's Shanghai Automotive Industry Corp., which owns a 51-percent stake in the
smallest automaker in South Korea, held a board meeting in the Chinese city of
Shanghai earlier in the day to finalize details of a plan to restructure
Ssangyong in return for financial support.
Unless SAIC injects fresh capital into Ssangyong, the cash-strapped automaker may
face liquidation, analysts say.
"The board meeting isn't finished yet," said Choi Nam-hyun, a spokesman at
Ssangyong in Seoul, denying a report by a Chinese Web site saying SAIC demanded
Ssangyong cut some 2,000 workers. In exchange for job cuts, the Chinese parent
would offer US$200 million in fresh capital, according to the report.
Ssangyong's chief executive officer will return to Seoul early Friday, and then
the company may announce the meeting's result, Choi said.
SAIC has been under pressure from South Korea's state-run Korea Development Bank,
the main creditor of Ssangyong, to provide fresh funds to the troubled affiliate.
About 5,200 unionized workers at Ssangyong have threatened to strike if the
Chinese parent demands Ssangyong slash its workforce.
SAIC bought a 51 percent stake in Ssangyong for $500 million in 2004, marking the
first direct investment by a Chinese company into a local manufacturer.
The acquisition has often been marred by conflicts with the union, which has
accused SAIC of stealing Ssangyong's car-manufacturing technology and failing to
honor its investment pledge.
Ssangyong reported a net loss of 98 billion won ($73.5 million) in the
January-September period last year, hit by slumping sales.
As of November last year, Ssangyong had 877 billion won in interest-bearing
debts, with total liabilities in excess of 1.46 trillion won, according to the
company's filing with the stock exchange.
(END)
