SNAM CEO Fahad Al-Duhaish
The Saudi National Automotive Manufacturing Co. (SNAM) will commence production at its car factory in Jubail Industrial City by mid-2024, Asharq TV reported, citing CEO Fahad Al-Duhaish.
The factory will initially operate with a production capacity of 30,000 cars per annum (p.a.), said Al-Duhaish, expecting the rate to increase to 100,000 cars in four years from the start of on-site production.
SNAM, according to the CEO, sealed contracts with six Korean companies to secure the production equipment and materials. This came within the course of setting up an integrated supply chain system, which will eventually comprise over 30 suppliers, with a primary focus on the production of compact pickup trucks and SUVs.
In its first phase, the factory’s direct employment stood at 1,200 jobs, while indirect employment exceeded 3,000 jobs, Al-Duhaish explained. He expects direct labor to hit 7,000 jobs after three to four years, while the number of indirect jobs would reach 30,000.
The percentage of local content in the new factory currently stands at 15% and is forecast to grow to 30% after three-five years.
In January 2022, SNAM, in cooperation with the Royal Commission for Jubail and Yanbu (RCJY), laid the foundation stone for the first-of-its-kind passenger car assembly plant in Saudi Arabia.
In 2019, SNAM signed an agreement with Korea's SsangYong Motor to establish a car manufacturing plant in Jubail Industrial City II, Argaam reported.
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