Seoul - South Korean automaker Ssangyong Motor Co resumed production Thursday after a 77-day strike that crippled output and endangered the company's survival plan.

About 3,500 workers at South Korea's smallest carmaker showed up at the plant to pledge turnaround efforts, cheering as the first vehicle in 84 days, a luxury Chairman W sedan, left the assembly line at the factory in Pyeongtaek, about 75 kilometers south of Seoul.

Ssangyong said that it plans to produce 4,500 vehicles a month from September at the plant which has an annual capacity of 300,000 vehicles.

The state-run Korea Development Bank, a creditor of Ssangyong Motor, said it is planning to provide 130 billion won (105 million dollars) to finance its restructuring efforts.

The news lifted Sangyong's shares by 15 per cent to end the day at 3,060 won.

Ssangyong asked for 150 billion won to develop the C200 compact sport-utility vehicle, but the bank said it was to wait for court approval of Ssangyong's restructuring plans, which the company must file by September 15.

The strike has crippled production at Ssangyong, as union workers attempted to halt a management plan to get rid of 36 per cent of its workforce, after the automaker was placed into bankruptcy protection in February.

Clashes between police commandos and workers left dozens of strikers and police injured. Dozens of union workers were arrested.

The occupation ended on August 6 after workers accepted a compromise offer from the management. After the strike ended, 5,600 auto-parts suppliers who are Ssangyong creditors said Tuesday they have withdrawn a liquidation petition for the carmaker.

Its major stakeholder, China's Shanghai Automotive Industry, had to relinquish management control during the bankruptcy protection process.  (dpa)