South Korea-based supplier Myongshin has agreed to buy General Motors' Gunsan factory, and will start manufacturing electric vehicles, reports Reuters.

The report comes in the wake of GM's global restructuring move, which saw the company shutting one of its four South Korean plants in May 2018, which resulted in thousands of workers being rendered jobless. This culminated in a major financial support package from the South Korean government.

According to the news story, while GM has not disclosed the sales price of the Gunsan factory, the auto parts maker Myongshin was reported saying it would buy the land and buildings of the GM facility for 113 billion won ($99.5 million or Rs 688 crore).

The Korean company, which is a supplier to both EV maker Tesla and Hyundai Motor, is part of a consortium which would initially spend a total of 200 billion won (Rs 1,217 crore) towards the factory to produce 50,000 EVs starting 2021 and 150,000 EVs in 2025, cited the report to a statement by a provincial government.

Image courtesy: GMauthority.com