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Photo courtesy of Yonhap News |
[Alpha Biz= Ellie Kim] KG Mobility has postponed the launch of its semi-knockdown (CKD) plant in Saudi Arabia by two months, as the prolonged Iran conflict disrupts logistics and supply chains across the Middle East.
According to the auto industry on the 28th, the company pushed back the plant’s start date from late June to late August, citing heightened risks in parts transportation. CKD plants rely on stable global supply chains, as vehicles are assembled locally using imported components.
The delay is expected to reduce this year’s production from a planned 3,300 units over six months to around 2,300 units. The facility, located in Jubail Industrial City and developed in partnership with Saudi National Automobiles, is designed with an annual capacity of 30,000 vehicles and was intended to serve as a regional production hub for models such as the Rexton and Musso.
The impact of the conflict is also being felt across the broader Korean auto industry. Hyundai Motor is also building a CKD plant in Saudi Arabia with the Public Investment Fund, but its planned fourth-quarter launch may be delayed if geopolitical tensions persist.
Alphabiz Ellie Kim 인턴기자(press@alphabiz.co.kr)
