SEOUL - An engine plant in China owned in part by what remains of South Korea's bankrupt Daewoo Motor Co. will be sold to General Motors, GM Daewoo Auto & Technology Co. said.
"GM China and Daewoo Motor creditors have signed a memorandum of understanding recently to sell the Yantai Engine Plant in Shandong province," Kim Sang-won, a GM Daewoo spokesman said. "The deal is expected to be completed by the end of this month after getting approvals from the Chinese government."
The engine plant is to be sold for between $60 million and $70 million, according to Korean press reports. Kim would not confirm that amount.
The Yantai Engine Plant was set up in 1999, owned half by Daewoo and half by local Chinese investors. It has been supplying engines and other auto parts to the province's auto assembly plant.
GM Daewoo was formed when General Motors, Suzuki Motor Corp. and Shanghai Automotive Industries Corp. purchased most of the assets of Daewoo Motor Co. GM owns 44.6 percent of the Korean carmaker and has management control.