Hyundai Breaks Ground: Launching First Middle Eastern Plant in Saudi Arabia - NEW BOX OFFICE TO DAY

Hyundai Motor-Saudi Arabia

SEOUL, May 15 (Yonhap) -- On Thursday, Hyundai Motor Co. announced that they have commenced construction of a factory in Saudi Arabia, which will be their initial manufacturing facility in the Middle East. This marks an important step towards expanding the company’s presence globally.

The groundbreaking ceremony for Hyundai Motor Manufacturing Middle East (HMMME) took place on Wednesday (local time) at the King Salman Automotive Cluster, situated inside the King Abdullah Economic City (KAEC) in Saudi Arabia, according to the firm.

HMMME is a collaborative effort formed by the South Korean car manufacturer and Saudi Arabia’s Public Investment Fund (PIF), structured as a 30%-70% ownership agreement. Manufacturing operations are set to commence in the last quarter of 2026, aiming for an initial yearly output of 50,000 vehicles, encompassing both electric cars and conventional Internal Combustion Engine models.

The facility stands at the heart of Saudi Arabia’s plan to establish a homegrown automotive sector, with the King Salman Automotive Cluster acting as the nation’s premier center for automobile production.

The event on Wednesday saw attendance of more than 200 high-ranking individuals and government representatives from both nations, featuring prominent figures such as Saudi Arabia’s Minister of Industry Bandar Alkhorayef and Deputy Chairperson of the Hyundai Motor Group, Chang Jae-hoon.

Chang stated that this milestone marks the beginning of a new chapter for both Hyundai Motor and Saudi Arabia. He expressed optimism that the facility will aid the nation’s Vision 2030 goals by nurturing domestic skills in automotive technology.

As part of the Vision 2030 strategy, Saudi Arabia is actively promoting the development of its automotive industry, as the Middle Eastern nation aims to diversify its growth engines while reducing its heavy dependence on the oil industry.

The South Korean car manufacturer aims to set up a hydrogen-based transportation system in Saudi Arabia through collaboration with entities including the Korea Automotive Technology Institute, Air Pods Qudra, and the Saudi Public Transport Company.

Through this collaboration, the entities intend to work together across several domains such as establishing a framework for hydrogen-based transportation systems and executing a trial initiative involving hydrogen-powered electric buses. Additionally, they will join forces on governmental research initiatives that support these efforts.

odissy@yna.co.kr

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