Hyundai has started construction work on a new factory in Saudi Arabia that is set to supply the country with some 50,000 cars annually.
It is based in the King Salman Automotive Cluster, a new automotive industry hub in the King Abdullah Economic City near Jeddah. As well as Hyundai, it currently hosts Lucid Motors (for which the Saudi government is a key financial backer) and Saudi brand Ceer.
It will produce both internal-combustion-engine and battery-electric vehicles according to local demand, and will build its first vehicle by October 2026. These will be assembled from knock-down kits, using parts sourced from Korea, reported business newspaper The Korea Times.
Ownership of the factory is split between the Saudi Public Investment Fund, which holds a 70% stake, and Hyundai, with the remaining 30%.
The plant is forecast to generate some $5 billion (£3.8bn) to the Saudi economy within 20 years.
“We believe our role will be significant in this early stage of the industry’s development here,” Hyundai brand chief Jaehoon Chang told reporters at the groundbreaking ceremony.
Hyundai sold some 136,000 cars in Saudi Arabia last year.
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