Hyundai and the Public Investment Fund (PIF), Saudi Arabia's sovereign wealth fund, have unveiled their joint endeavor to build an advanced automotive manufacturing facility in the country. This strategic partnership, announced during the Saudi-Korean Business Forum, marks another automotive company starting vehicle production in the kingdom following Lucid Motors.
The PIF will take a commanding 70 percent stake in the new venture, with Hyundai maintaining the remaining 30 percent. Notably, the South Korean automaker will assume the role of a strategic technology partner, offering technical and commercial support to facilitate the establishment of the manufacturing plant. The projected investment for this transformative project is anticipated to surpass $500 million.
At the heart of this collaboration is the ambitious goal of producing 50,000 vehicles annually, encompassing both internal combustion engines and electric vehicles. The plant's commencement is scheduled for 2024, with production slated to commence in 2026. But first, the joint venture needs to obtain customary approvals from the relevant authorities.
"We are excited about the potential of this venture to drive significant advancements in vehicle production, fostering a sustainable and eco-friendly automotive future in the region. Our joint efforts will create opportunities for innovation and environmental progress," Hyundai says in a statement.
In August of this year, Hyundai made a substantial investment of $290 million at its Hyundai Motor Manufacturing Alabama (HMMA) plant to bolster production and enhance its standing in the SUV market. Of the total investment, an impressive $190 million has been allocated for tooling and equipment upgrades, primarily intended to facilitate the production of the new Santa Fe.
In another important move from October 2022, Hyundai also initiated the construction of Hyundai Motor Group Metaplant America (HMGMA) LLC's new manufacturing plant at the Bryan County Mega site in Georgia. This substantial $5.54 billion investment by the company and its affiliate suppliers encompasses two critical elements: a dedicated all-electric vehicle factory and an EV battery gigafactory.
As for Saudi Arabia’s automotive industry, according to an article from Arab News, the kingdom currently operates 160 vehicle factories. Of this number, 33 are dedicated to the production of parts, accessories, and engines, while 21 are focused on vehicle manufacturing and structural components, including various processing works. An additional 106 facilities are geared toward the production of trailers, semi-trailers, and trucks.