Hyundai is Establishing a New Factory in Saudi Arabia
Hyundai Motor Company signed a partnership agreement with the Public Investment Fund (PIF) of Saudi Arabia to establish a highly automated production facility in Saudi Arabia. This partnership aims to produce both internal combustion and electric vehicles.
Hyundai Motor Company announced that it signed a joint venture agreement with PIF to establish a new production facility in Saudi Arabia. Under this agreement, PIF will hold a 70 percent stake in the new joint venture, and Hyundai will provide technical and commercial support with a 30 percent stake. The total investment of the project is expected to exceed 500 million dollars.
Features of the New Facility
The foundation of the new facility is planned to be laid in 2024 and production will begin in 2026. The facility aims to produce 50 thousand vehicles per year. These vehicles will be both internal combustion engine and electric vehicles.
The new facility will strengthen Hyundai's presence in Saudi Arabia and will be able to better serve its customers in the region. Additionally, the facility will contribute to creating a sustainable and environmentally friendly automotive future in line with Saudi Arabia's Vision 2030.
Hyundai Motor Company President and CEO Jaehoon Chang said about the partnership: “We are excited to create a sustainable and environmentally friendly automotive future in the region. “Our joint efforts will create significant opportunities for innovation and environmental progress.”
Hyundai's Global Production Network
Hyundai Motor Company is the world's fifth largest automobile manufacturer. Hyundai has 10 factories in eight countries: South Korea, China, India, Brazil, Russia, Turkey, Czech Republic and the USA. It also produces vehicles at Kia Motors' factory in Slovakia.
Hyundai produces different models to suit global markets. For example, the i20 model produced by Hyundai in Turkey is aimed at the European market. The Kona model, produced by Hyundai in the Czech Republic, appeals to the electric vehicle market.
The new facility that Hyundai will establish in Saudi Arabia will add a new link to the brand's global production network and enable it to be closer to regional markets.