FILE PHOTO: The logo of Hyundai Motor Company is pictured at the New York International Auto Show, in Manhattan, New York City, U.S., April 13, 2022. REUTERS/Andrew Kelly/File Photo
RIYADH: Hyundai Motor Co has agreed to a deal with Saudi Arabia’s sovereign wealth fund to develop a more than US$500mil car assembly plant, joining electric vehicle maker Lucid Motors Inc in producing cars in the oil-rich kingdom.
The South Korean car company will likely develop the facility at King Abdullah Economic City near Jeddah with an aim to produce 50,000 vehicles a year, according to Park Jiwoo, a senior manager at Hyundai’s external affairs team.
The plant will be a joint venture between the Public Investment Fund, which will hold a 70% stake in the Saudi venture, and Hyundai, which will own the rest.
The assembly plant will start operations in early 2026, producing a mix of electric vehicles and internal combustion engine cars, and is expected to cover around 3.2 million sq ft.PIF, as the kingdom’s wealth fund is known, confirmed the joint venture in a statement and said the new plant “will create thousands of jobs and allow for knowledge and expertise transfer.” Developing a domestic auto industry centred around Jeddah is one part of Saudi Crown Prince Mohammed bin Salman’s plans to diversify the country’s oil-dependent economy. — Bloomberg
