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[Alpha Biz=(Chicago) Reporter Kim Jisun] Hyundai Motor has secured its first production base in the Middle East in Saudi Arabia, with an annual production capacity of 50,000 units.
Currently, U.S. electric vehicle company Lucid, the largest shareholder of the Saudi Sovereign Wealth Fund (PIF), has begun operating an electric vehicle semi-assembly plant, and Taiwan's Foxconn is also seeking to manufacture electric vehicles in cooperation with Saudi capital.
Hyundai Motors announced on the 22nd (local time) that it has signed a joint venture agreement to establish a semi-finished product assembly (CKD) plant for automobiles.
Under the contract, the two sides will build an annual CKD joint plant of 50,000 units in Saudi Arabia's King Abdullah Economic City (KAEC) with the aim of starting construction in the first half of 2024 and mass-producing it in the first half of 2026. It is a factory that produces the final finished product in the form of semi-finished products. Target models include both electric vehicles and internal combustion locomotives. The total investment is over $ 500 million, which will be carried out as a joint investment between the two sides. Hyundai Motor holds 30% of the shares and PIF holds 70%.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
