Hyundai threatens to end technology transfer agreement with Vietnamese partner
Hyundai believes delay in the construction of its Vietnamese engine plant could disrupt its plans for the ASEAN region.
Hyundai is threatening to end the technology transfer agreement it has with Vietnam's Truong Hai Auto Joint Stock Company (THACO), signed in 2011, to produce 20,000 Euro II- and Euro III-compliant engines annually in the Southeast Asian country, reports Vietnam Investment Review. Hyundai and THACO entered into a partnership in 2011 to build a vehicle engine manufacturing factory in central Quang Nam province's Chu Lai Open Economic Zone in Vietnam. Construction of the factory began during late 2011 and it was scheduled to be completed by the end of 2012; however, the plant is still under construction and, as a result of the delay, Hyundai wants to end its technology transfer agreement with THACO.
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