Major U.S. automaker General Motors(GM) has decided to close one of its four plants in South Korea, which employs about two-thousand workers.
GM said in a press release Tuesday that it will shut down its vehicle assembly plant in Gunsan, North Jeolla Province by the end of May.
GM Korea Chief Executive Kaher Kazem said the measure is a necessary but difficult first step in its efforts to restructure operations in South Korea.
A GM Korea official said that the decision came after concluding that it is impossible to pursue a turnaround while maintaining all production equipment.
The Gunsan facility, which had been producing the Cruze compact car and the Orlando multi-purpose vehicle, has been operating at some 20 percent of capacity over the past three years.