In 2023, each events revealed plans for a brand new manufacturing unit and established their three way partnership, HMMME. The principle objective of this enterprise is to assemble and handle a automotive manufacturing facility in King Abdullah Financial Metropolis. The manufacturing unit is anticipated to start operations within the fourth quarter of 2026, with an annual manufacturing capability of fifty,000 autos, which can embody each electrical and combustion-engine fashions.
HMMME predominantly consists of Saudi possession, with the Public Funding Fund (PIF) holding a 70% stake and Hyundai proudly owning the remaining 30%. This plant will mark Hyundai’s first manufacturing web site within the Center East. Throughout their 2023 announcement, Hyundai projected a complete funding exceeding $500 million, roughly translating to over €446 million.
At the moment, there isn’t a data on which electrical fashions can be produced in Saudi Arabia, with the announcement solely indicating that native manufacturing goals to place Saudi Arabia as a big participant within the international automotive market.
Yazeed A. Alhumied, Deputy Governor and Head of MENA Investments at PIF, remarked that this breakthrough represents a serious milestone for PIF, reinforcing the automotive business inside Saudi Arabia. He emphasised the PIF’s position in fostering and accelerating the expansion of the native automotive ecosystem by partnerships, highlighting the initiative’s dedication to constructing native capabilities, attracting superior know-how, and producing expert jobs within the sector.
Wongyun Park, Vice President and CEO of Hyundai Motor Manufacturing Center East, famous that HMMME is spearheading transformation and paving the way in which for a brand new industrial future within the area, stating, “The ability will grow to be a platform for development and industrial excellence within the coronary heart of the Kingdom.”
The collaboration with Hyundai is a part of a broader technique by the PIF to domesticate the automotive business in Saudi Arabia. As an example, Lucid Motors commenced operations of an electrical automotive manufacturing unit within the nation in September 2023. Situated in King Abdullah Financial Metropolis, this plant has been producing the Lucid Air by way of a semi-knocked-down (SKD) meeting course of, with car kits manufactured at Lucid’s foremost facility in Casa Grande, Arizona, and shipped for ultimate meeting.
Concerning Hyundai’s operations, there was no particular point out of SKD or CKD manufacturing, solely references to “extremely automated car manufacturing.”
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