The Public Investment Fund (PIF) and Hyundai Motor Company (Hyundai) announced the signing of a joint venture agreement to establish a highly automated vehicle manufacturing plant worth over $500 million in Saudi Arabia, reported the Saudi Press Agency on Sunday.
PIF will hold a 70% stake in the new joint venture with Hyundai holding the remaining 30%. Hyundai will also act as a strategic technology partner to support the development of the new manufacturing plant, by providing technical and commercial assistance.
The joint venture announced at the Saudi-Korean Business Forum, aims to manufacture 50,000 vehicles per year, including both internal combustion engines (ICE) and electric vehicles (EV). The plant groundbreaking is planned for 2024, and production is expected to begin in 2026.
The new manufacturing plant will create thousands of jobs and allow for knowledge and expertise transfer. The localization of Hyundai’s vehicles will accelerate the development of Saudi Arabia’s automotive and mobility ecosystem and attract further investments to the sector and the wider economy.
The partnership is PIF’s latest initiative to advance Saudi Arabia as a global automotive player, drive transformation in the sector, and encourage manufacturing capabilities, infrastructure, and supply chains in Saudi Arabia and beyond.
As the third largest automaker worldwide in terms of sales volume, Hyundai Motor Group brings invaluable technical capabilities and expertise to design, develop, and operate the vehicle manufacturing plant.
The joint venture also highlights PIF’s efforts to create national and regional champions, build local capabilities, attract cutting-edge technology, and create highly skilled jobs in Saudi Arabia’s automotive and mobility sectors.
Deputy Governor and Head of MENA Investments at PIF Yazeed A. Al-Humied said: “Partnering with Hyundai is another significant milestone for PIF in successfully enabling and accelerating the growth of Saudi Arabia’s automotive ecosystem – one of our 13 priority sectors.”
In January, the Ministry of Industry and Mineral Resources signed a memorandum of understanding (MoU) with Hyundai to build an assembly plant based on the CKD [Completely Knocked Down] system for electric and internal combustion engine cars in the Kingdom.
