Hyundai Heavy reaps harvest at Russian farmland

Hyundai Heavy Industries, the world's largest shipbuilder, has harvested 4,500 tonnes of soy and 2,000 tonnes of corn at its Russian farm.

In April last year, Hyundai Heavy bought 67.6% of the Russian farm, in Khorolsky Rion, about 170 kilometres north of Vladivostok, for US$6.5 million, to grow corn and soy as part of efforts to diversify revenue sources.

The shipbuilder said it plans to invest US$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.

Hyundai Heavy said the farmland is expected to produce 60,000 tonnes of corn and soy annually by 2014.

The Russian farmland is currently operated by Hyundai Corp., which was taken over by Hyundai Heavy last year.

Hyundai Heavy's move into grain production is in line with the government's drive to secure stable food supplies. Currently, South Korea is one of Asia's largest importers of corn.