Ssangyong Motor Company Closes a Deal to Export Kyron in CKD form to Vietnam FEB/11/2010

▪ The deal is for exporting a total of 16,000 units of Kyron from 2010 to 2014, 2,000 to 4,000 units annually
▪ With this contract, Ssangyong will have a bridgehead to advance into the ASEAN market
▪ CKD export to Vietnam is the second to Russia, raising expectation to increase export sales volume by reinvigorating emerging markets
 
Ssangyong Motor Company (www.smotor.com) announced on April 11th that it had closed a deal to export a total of 16,000 units of Kyron in CKD (Complete Knock Down) form until the year 2014.
 
With this deal, Ssangyong will export a total of 16,000 units of Kyron in CKD form, starting from 2,000 units this year, followed by 2,500 in 2011, 3,000 units in 2012, and 4,000 units in 2013 and 2014 respectively. This will also generate additional values to the company including technology assistance fee by dispatching manpower to assist local assembly lines.
 
The cooperation with Vinaxuki, Ssangyong's Vietnamese partner that has focused mainly on trucks and other commercial vehicles, will allow Ssangyong Motor Company to enter into the SUV market and to achieve its goal for increasing sales based on the new local production and sales base.
 
It is especially meaningful that Ssangyong Motor Company has secured a bridgehead to advance into the emerging ASEAN market by increasing sales volume in Vietnam as well as in neighboring countries.
 
The vehicle market in this country has recently shown a rapid growth, sending a positive signal for future sales. A total of 180,000 units of automobiles, including 20,000 SUVs, were sold in Vietnam last year.
 
Ssangyong successfully closed a deal with Russia's Sollers last January on exporting Rexton and Kyron. By adding another successful CKD contract with Vietnam, Ssangyong Motor Company will be able to accelerate its effort to increase the export volume especially in the emerging markets.
 
The expansion of overseas CKD operation can be interpreted as a proof that the company has regained credibility in overseas market. Backed by this, the company has laid out an ambitious export plan for this year of 45,000 units, 243% higher than last year's export sales.
 
"Cutting a CKD export contract with Vietnam is a significant event since it will provide us of a bridgehead to make an inroad into the emerging Southeast Asian markets," said Lee Yoo-il, a Legal Trustee. "There will be more and more vehicles with Ssangyong badge running on the roads of Latin America, Middle East and Asia as we pioneer new markets in these regions,"he added.