Europe South Asia Asia Pacific Americas Middle East Africa BBC Homepage World Service Education



Front Page

World

UK

UK Politics

Business

Sci/Tech

Health

Education

Sport

Entertainment

Talking Point

In Depth

On Air

Archive
Feedback
Low Graphics
Help

Friday, July 16, 1999 Published at 07:58 GMT 08:58 UK


Business: The Company File

New hope for Hyundai plant

The Hyundai plant has been abandoned for a year

The UK's biggest inward investment project, which was abandoned a year ago could be resurrected, it has been revealed.

Hyundai's electronics plant at Dunfermline in Fife was mothballed last year along with hopes of at least 800 jobs.

BBC Scotland understands Hyundai are in contact with suppliers about a resumption of work.

The massive plant has not yet produced a single silicon chip after falling victim to the collapse of money markets in the Far East nearly two years ago.


[ image: Silicon chips were to be made at the plant]
Silicon chips were to be made at the plant
The project, worth at least £1bn, ground to a halt after Korean companies came under pressure from their government to cut back on investment to reduce South Korea's levels of debt.

The decision to halt development of the site sparked controversy over whether the British taxpayers would have to pay out large sums in attracting the investment without gaining a return.

But enterprise agencies stressed the Korean company had received no money.

There were hopes recently that development of the plant could restart later this year after Hyundai signed a £1.3bn buy-out deal with fellow South Korean conglomerate LG Semicon.

Hyundai's apparent recovery appeared to boost the plant's chances but nothing concrete has as yet been confirmed.

In the latest development, the Korean company is thought to have talked to several supply companies and organisations whose products and services would be crucial to kitting out and operating the plant.

At this stage the contacts amount to checking out the state of readiness of the companies involved.

Council pledge

Local council leaders confirmed they had had no concrete signals yet but pledged that every effort would be made to get the factory up and running.

Councillor Bill Brand said: "We will be ready to address any of the situations that may develop and we feel confident we could respond to the challenge if it comes about."

An official announcement from Hyundai is not expected for several weeks.



Advanced options | Search tips




Back to top | BBC News Home | BBC Homepage | ©


The Company File Contents

Internet Links


Hyundai Electronics


The BBC is not responsible for the content of external internet sites.




In this section

Microsoft trial mediator welcomed

Vodafone takeover battle heats up

Christmas turkey strike vote

NatWest bid timetable frozen

France faces EU action over electricity

Pace enters US cable heartland

Mannesmann fights back

Storehouse splits up Mothercare and Bhs

The rapid rise of Vodafone

The hidden shopping bills

Europe's top net stock

Safeway faces cash demand probe

Mitchell intervenes to help shipyard

New factory creates 500 jobs

Drugs company announces 300 jobs

BT speeds internet access

ICL creates 1,000 UK jobs

National Power splits in two

NTT to slash workforce

Scoot links up with Vivendi

New freedom for Post Office

Insolvent firms to get breathing space

Airtours profits jump 12%

Freeserve shares surge

LVMH buys UK auction house

Rover - a car firm's troubles