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

(LEAD) Hyundai Motor-Saudi Arabia

SEOUL, May 15 (Yonhap) — On Thursday, Hyundai Motor Co. announced that they have commenced construction of a production facility in Saudi Arabia, which will be their initial manufacturing site in the Middle East. This marks an important step in the company’s strategy for expanding 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 King Abdullah Economic City (KAEC) in Saudi Arabia, according to the firm.

HMMME is a collaborative project formed by the South Korean car manufacturer and Saudi Arabia’s Public Investment Fund (PIF), structured as a 30-70 ownership agreement. The facility plans to commence production in the last quarter of 2026, aiming for an initial yearly output of 50,000 vehicles, which will encompass both electric cars and conventional internal combustion engines.

The facility stands at the heart of Saudi Arabia’s plan to build up its own car-making sector, with the King Salman Automotive Cluster acting as the nation’s newest center for automobile production.

The event on Wednesday saw attendance of more than 200 high-ranking individuals and government representatives from both nations, featuring notable figures such as Saudi Arabia’s Industry Minister 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 voiced his optimism that the facility would aid the nation’s Vision 2030 goals by nurturing domestic skills proficient in automotive technology.

"Today’s milestone signifies the start of a fresh chapter for both Saudi Arabia and Hyundai Motor Company, as we set the groundwork for a new age of advanced mobility solutions and cutting-edge technology," Chang stated.

Yazeed Alhumied, the deputy governor of PIF, praised the partnership for highlighting the dedication of the Saudi sovereign wealth fund to fostering domestic skills, bringing advanced technologies, and generating high-quality employment opportunities within Saudi Arabia’s automotive and mobility industry.

Hyundai Motor stated that the new facility will create numerous employment opportunities in Saudi Arabia and facilitate the sharing of industrial expertise as well as skill enhancement.

"Hyundai's vehicle localization efforts will speed up the expansion of Saudi Arabia's automotive and mobility sector, setting the stage for a new industrial era," the company stated.

Under the Vision 2030 plan, Saudi Arabia is vigorously fostering the expansion of its automotive sector. This initiative comes as the country seeks to broaden its economic base and lessen its significant reliance on the petroleum industry.

The South Korean car manufacturer aims to create a hydrogen mobility system in Saudi Arabia through collaboration with the Korea Automotive Technology Institute, Air Pods Qudra, and the Saudi Public Transport Company.

Through this collaboration, the entities intend to work together across multiple sectors, such as establishing a framework for hydrogen-based transportation and implementing a trial initiative involving hydrogen-powered electric buses. They will also join forces on governmental research efforts that receive support from the administration.

odissy@yna.co.kr

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