Hyundai and PIF collaborated to establish a car production facility in Saudi Arabia
1 min
PIF and Hyundai collaborate on a $500 Million vehicle plant in Saudi Arabia.
Advanced vehicle manufacturing plant in Saudi to produce 50,000 vehicles annually.
Saudi Ministry of Industry and Hyundai sign MoU for CKD system assembly plant.
The Public Investment Fund (PIF) of Saudi Arabia and South Korea's Hyundai Motor Company are partnering to launch an advanced vehicle production facility in Saudi Arabia with an investment exceeding $500 million.
PIF will own 70% of the shares in this partnership, while Hyundai will possess the remaining 30%, as stated by the sovereign fund.
Hyundai's role in this collaboration will be significant as it will offer technical and business guidance, cementing its position as a critical technological ally in this venture.
This newly formed partnership has set a goal to produce 50,000 vehicles annually, comprising traditional internal combustion engine vehicles and electric ones.
The inauguration of the plant's construction is slated for 2024, to start vehicle production by 2026.
This joint venture's establishment remains contingent on the green light from the respective regulatory bodies.
Earlier in January, an agreement was inked between the Ministry of Industry and Mineral Resources and Hyundai. This memorandum of understanding (MoU) laid the foundation for establishing an assembly plant in Saudi Arabia, focusing on CKD (Completely Knocked Down) systems for electric and traditional engine vehicles.
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