Ssangyong could shut plant for three weeks

Seoul: Ssangyong Motor, a South Korean unit of China's biggest carmaker, may close its local factory for almost three weeks from July 31 to upgrade its production lines.

Ssangyong, controlled by SAIC Motor, will discuss with its workers' union a plan to halt production from July 31 to August 17 at three assembly lines at Pyeongtaek, Kevin Lee, a company spokesman, said by telephone.

The stoppage will enable the company to retool paint shops at the plant for a new sedan model to be sold in 2010 and workers will be granted paid leave once the plan is agreed on, he said.

The likely shutdown comes amid a sales slump at South Korea's smallest automaker, which specialises in building sport-utility vehicles.

Record oil prices have damped demand for SUVs, cutting Ssangyong's vehicle sales 26 per cent from a year earlier during the first half, according to company data.