AI Summary
Saudi Arabia is making confident strides and accelerating progress toward localizing the automotive industry, creating added value from the sector in the national economy and enhancing its global competitiveness, in line with the goals of Saudi Vision 2030, Minister of Industry and Mineral Resources Bandar Alkhorayef said.
After laying the foundation stone for the Hyundai plant at King Salman Automotive Cluster, the minister said that the plant represents an important milestone in the journey to localize the automotive industry in the Kingdom.
He added that the move will have a significant impact in enhancing industrial capabilities, strengthening supply chains, localizing industrial production, developing local content to meet local and regional demand for cars and consolidating the Kingdom's position as a global hub for the automotive industry.
Alkhorayef highlighted the Public Investment Fund's (PIF) role in supporting industrial transformation and empowering high-value sectors that will create a tangible economic impact in the Kingdom and the region.
He noted the significant impact of the integrated work and unified efforts of all relevant government agencies in the remarkable progress towards localizing the automotive industry in the Kingdom, including establishing the Hyundai factory.
The minister also emphasized that the project aligns with the Kingdom's accelerating progress in achieving its industrial goals and transforming its visions into a tangible reality. He added that attracting three global automotive industry leaders, who together produce 300,000 vehicles annually in a single industrial complex, is among the goals of the National Industrial Strategy, as Hyundai joined Lucid and CEER.
According to data available with Argaam, Hyundai Motor Manufacturing Middle East (HMMME) broke ground on its new factory in King Salman Automotive Cluster within King Abdullah Economic City (KAEC) on May 14.
PIF and Hyundai Motor Co. signed a joint venture agreement in October 2023 to establish a highly automated vehicle manufacturing plant in the Kingdom. PIF holds a 70% stake in HMMME, while Hyundai Motor owns the remaining 30%.
The plant is expected to produce 50,000 vehicles annually and contribute approximately $5 billion to the Kingdom's GDP by 2045. It will also play a significant role in supporting the Kingdom's broader goals of localizing industrial production, enhancing local content, and developing supply chain capabilities.
Be the first to comment
Comments Analysis: