Hyundai Constructing Saudi Plant for EVs & Combustion Cars

Projected Investment: $500M, Not Just From Hyundai

Hyundai and the Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth fund, unveiled their collaborative scheme to construct a sophisticated automotive manufacturing system in the country. At the Saudi-Korean Business Forum, this notable partnership was revealed, signifying another car manufacturer commencing vehicle manufacturing there following Lucid Motors.

The PIF is expected to take on a formidable 70% share of the refurbished venture, whilst Hyundai will possess the residual 30%. Hyundai shall then operate as a technological ally, providing both technical and economic guidance to set-up the production facility. This innovative plan is Forecasted to require over $500 million in investments.

The core of this association involves the ambitious objective of producing fifty thousand units a year, with both traditional combustion engines and electrical cars. The setup of the factory is planned for 2024, and manufacturing should begin two years afterwards. Prior to that, though, the merger will need to take and pass the standard clearances from pertinent officers.

“At Hyundai, we are thrilled about the prospects of this endeavor and its potential to bring about great strides in motor vehicle production. Our combined efforts will pave the way for a more sustainable and eco-friendly automotive future in the area. This collaboration opens up possibilities for innovation and environmental growth,” Hyundai declared in a statement.

During August of this year, Hyundai made an enormous property infusion worth $290 million at its manufacturing facility, the Hyundai Motor Manufacturing Alabama (HMMA) plant. This money will be used to increase output and greatly strengthen its position in the SUV industry. Particularly, an impressive $190 million has been assigned for modernizing machinery and tools, principally focusing on the crafting of the new Santa Fe.

This month, Hyundai will be making an imperative step come October 2022 with the commencement of construction on Hyundai Motor Group Metaplant America (HMGMA) LLC’s brand new facility in Bryan County Mega division in Georgia. This massive $5.54 billion investment by the organization and its partner suppliers envelopes two key features: a distinct all-electric car manufacturing center and an EV battery gigafactory.

For Saudi Arabia’s automotive field, a piece from Arab News mentions that there are presently 160 vehicle factories in the nation. Out of these, 33 are employed in making parts, add-ons and motor assemblies, 21 are devoted to building vehicles as well as structure elements including different crafting operations. Also, 106 more plants are put towards the production of semi-trailers, trailers, and trucks.

Source: Hyundai