RIYADH, Oct 22 (Reuters) – South Korea’s Hyundai Motor Neighborhood (005380.KS) will receive a automobile plant in Saudi Arabia collectively with the Public Funding Fund (PIF), Saudi Arabia’s sovereign wealth fund, South Korea’s President Yoon Suk Yeol mentioned on Sunday.
Yoon become speaking in Riyadh the build the PIF and Hyundai signed the settlement on the plant, that can dangle an annual manufacturing capability of 50,000 electrical and gas-powered autos and would possibly possibly be the first South Korean automobile manufacturing facility within the Middle East, a joint assertion mentioned.
PIF will defend a 70% stake within the recent joint venture with Hyundai maintaining the final 30%. Total investment for the venture is estimated to exceed $500 million, it added.
Hyundai Motor Neighborhood, the arena’s No. 3 auto group by gross sales, is embarking on manufacturing within the Gulf stutter as Saudi Arabia has been looking out for to shift its financial system away from oil and is aiming to make bigger than 300,000 autos each year by 2030.
“Hyundai will additionally act as a strategic abilities accomplice to toughen the enchancment of the recent manufacturing plant, by providing technical and industrial assistance,” the assertion mentioned.
Yoon mentioned the first autos would roll off the manufacturing line in 2026. No particulars got on the true home of the plant or the particular models which would be made there.
Yoon visited Saudi Arabia the build he met with Saudi Crown Prince Mohammed bin Salman, the dominion’s de facto ruler. Yoon traveled with a delegation of business leaders alongside side Hyundai Motor Neighborhood Govt Chair E.S. Chung.
Yoon and Prince Mohammed signed various agreements alongside side on establishing strategic partnerships and creating “green” hydrogen, Saudi stutter news agency SPA reported.
Reporting by Pesha Magid, Ju-min Park and Heekyong Yang; Writing by Aziz El Yaakoubi; Editing by John Stonestreet, David Holmes and Josie Kao
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