Lada Polska production halted

As the result of liquidation of Samsung Commercial Vehicles begun by the Korean government, Lada Polska has had to revise its plans for opening an assembly plant for the Korean car manufacturer reports Puls Biznesu. The company had planned to start production in a factory in Kunowo near Ostrowiec Swietokrzyski, which was to have assembled 400 vehicles by the end of 2000. On Monday, the president of Lada Polska, Piotr Kowalski, received a letter from Samsung expressing regret about the fact that the Korean company is unable to meet its contract requirements due to financial troubles. The Lada chief seeks to recover as much as possible of the funds involved in the investment, including a license fee amounting to hundreds of thousands of zlotys. According to assembly plant owner Jan Borowski, Lada Polska's president said that instead of Samsung production, the plant would now assemble Russian Gaz models with Polish engines. "[Company president] Kowalski will soon visit Russia and there is still a chance to start production in the beginning of next year," said Jan Borowski. "We are not cancelling our plans to open our own assembly plant." Due to the problems with Samsung, Lada is now unable to issue shares amounting to zl. 30 million for further development and create the previously planned holding consisting of three companies. M.M.