Hyundai Heavy buys Russian farm for US$ 6.5M

April 14, 2009 11:40 pm 

SEOUL, April 14 — Hyundai Heavy Industries Co., the world's largest shipbuilder, said Tuesday that it bought 67.6 percent of a Russian farm for US$ 6.5 million to grow corn and soybeans as part of efforts to diversify revenue sources.

The farm is located in Khorolsky Rion, about 170 kilometers north of Vladivostok, according to Hyundai Heavy.

The shipbuilder said it plans to invest $ 9 million to increase the farming area to 50,000 hectares from 10,000 hectares by 2012, and the crops will be sold to South Korea.

The firm said the farmland is expected to produce 60,000 tons of corn and beans annually by 2014.

Hyundai Heavy has ventured into solar and wind power to reduce its reliance on shipbuilding, which accounted for almost half its sales.

Hyundai Heavy's move is in line with the government's drive to secure stable food supplies.

Resource-poor South Korea, one of Asia's largest importers of corn, has been seeking to secure stable supplies of natural resources including food. (PNA/Yonhap)

LDV/ebp

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