Latest news with #KingAbdullahEconomicCity
Trade Arabia
6 days ago
- Business
- Trade Arabia
Johnson Controls opens largest York chiller production line in Jeddah
Johnson Controls Arabia, a global leader in smart building controls, and energy efficiency solutions, has inaugurated the first-ever 600-tonne air-cooled chiller production line at the York manufacturing complex in King Abdullah Economic City, Jeddah. The largest of its kind ever manufactured in Saudi Arabia, the chiller represents the latest evolution in the globally renowned YVAA series, now designed and manufactured in the kingdom with full compliance to the 'Saudi Made' certification programme, said a statement from Johnson Controls Arabia. Built for premium energy efficiency and optimal performance, this chiller meets the strictest standards in electrical safety, environmental sustainability, and trade requirements - both locally and internationally, it stated. This milestone is accompanied by the launch of Saudi Arabia's first AHRI-certified performance testing lab dedicated for up to 600-tonne air-cooled chillers, reinforcing the kingdom's emergence as a regional hub for HVAC innovation and industrial excellence. This breakthrough highlights the company's leadership in localizing HVAC technologies and its long-standing track record to high-performance manufacturing. It also holds AHRI Certification, confirming its verified performance and reliability. As part of Johnson Controls' global technology transfer initiative, this chiller benefits from the same design and manufacturing protocols the company used across the world, enabling cost-effective, high-quality local production, it stated. Johnson Controls Arabia CEO Dr. Mohanad AlShaikh said: "This milestone marks a proud moment for us as we continue to set new benchmarks in local manufacturing excellence and innovation from the heart of Saudi Arabia." "The launch of the 600-ton air-cooled chiller production line, the largest of its kind in the region, and the first AHRI-certified testing lab for this capacity of equipment in the Kingdom, underscores our dedication to supporting Saudi industrial leadership in line with Vision 2030," stated AlShaikh. The newly inaugurated AHRI-certified performance testing lab - the first in Saudi Arabia built specifically to test and certify up to 600-tonne air-cooled chillers - is a state-of-the-art facility located within the York Manufacturing Complex. It enables localised Factory Acceptance Testing (FAT), certification renewals, and prototype testing, significantly reducing lead times and boosting customer confidence. Accredited by IAS and equipped with advanced precision technologies, the lab enhances the company's research, development, and quality assurance capabilities, said the top official. The York Manufacturing Complex plays a pivotal role in advancing sustainability through local manufacturing. It exports 30% of its production to 26 countries - including high-demand markets such as the US and China - while 80% of total sales come from products manufactured in-house. The factory emphasizes high-quality, eco-friendly production that strengthens the 'Saudi-Made' brand.
Yahoo
19-05-2025
- Automotive
- Yahoo
Hyundai-PIF Saudi auto plant set to drive local vehicle financing market
Saudi Arabia's vehicle financing sector is expected to see significant growth following the announcement that Hyundai Motor Company and the Public Investment Fund (PIF) have begun construction of a new automotive manufacturing facility at the King Salman Automotive Cluster in King Abdullah Economic City. Structured as a joint venture, with PIF holding a 70% stake and Hyundai the remaining 30%, the plant will have an annual production capacity of 50,000 vehicles, including both internal combustion engine (ICE) and electric vehicles (EVs). The majority of output is expected to serve the domestic market, where Hyundai already maintains one of the largest market shares, particularly in the passenger vehicle segment. The new production capacity is expected to directly support the expansion of Saudi Arabia's vehicle financing market, with implications for both retail and fleet finance providers. Analysts expect increased availability of locally manufactured vehicles to improve affordability and lower lead times, enabling lenders to expand consumer credit offerings while also supporting government procurement schemes and leasing models. According to the Ministry of Industry and Mineral Resources, the facility is part of Saudi Arabia's broader National Industrial Strategy, which aims to localise production and attract global OEMs. The government's vehicle localisation drive is aligned with efforts to boost domestic content and reduce reliance on imports—factors that are likely to influence financing structures, pricing models, and risk assessments across the lending market. The Local Content and Government Procurement Authority is expected to play a key role in supporting demand through large-scale procurement programmes. These may include fleet purchases from public sector entities, creating opportunities for Islamic leasing (ijara) and other structured finance products designed to align with Saudi Arabia's Vision 2030 localisation targets. Hyundai's decision to invest in domestic production follows extensive engagement with Saudi stakeholders, including a 2022 memorandum of understanding and a series of 2023 meetings with senior government officials. The plant's output will also support PIF's existing automotive investments, including Ceer and Lucid Motors, and is projected to contribute USD 5 billion to the Kingdom's GDP by 2045. "Hyundai-PIF Saudi auto plant set to drive local vehicle financing market" was originally created and published by Motor Finance Online, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Auto Car
19-05-2025
- Automotive
- Auto Car
Hyundai to build future cars in Saudi Arabia
Close Hyundai has started construction work on a new factory in Saudi Arabia that is set to supply the state with some 50,000 cars annually. It is based in the King Salman Automotive Cluster, a new automotive industry hub in the King Abdullah Economic City near Jeddah. As well as Hyundai, it currently hosts Lucid Motors (for whom the Saudi government is a key financial backer) and Saudi brand Ceer. It will produce both internal-combustion-engine and battery-electric vehicles according to local demand, and will build its first vehicle by October 2026.
Arab News
15-05-2025
- Automotive
- Arab News
Hyundai Motor Manufacturing Middle East celebrates groundbreaking milestone
Hyundai Motor Manufacturing Middle East, a joint venture between PIF and Hyundai Motor Company, hosted its groundbreaking ceremony in the King Salman Automotive Cluster within King Abdullah Economic City. The ceremony is a significant milestone that marks another step in the development of the automotive industry in Saudi Arabia. PIF owns a 70% stake in HMMME, with Hyundai holding the remaining 30 percent. The manufacturing plant, Hyundai's first facility in the Middle East, will roll out its first vehicle by the fourth quarter of 2026 and targets an annual production of 50,000 vehicles. This will include both internal combustion engines and electric vehicles. Yazeed A. Alhumied, deputy governor and head of MENA Investments at PIF, said: 'This groundbreaking is a significant milestone for PIF as it further strengthens the automotive industry in Saudi Arabia. "PIF will continue to enable and accelerate the growth of Saudi Arabia's automotive ecosystem through partnerships. This joint venture underscores PIF's commitment to build local capabilities, attract cutting-edge technology, and create highly skilled jobs in Saudi Arabia's automotive and mobility sector.' Jaehoon Chang, Hyundai Motor Group vice chair, said: "Today's groundbreaking marks the beginning of a new chapter for both the Kingdom and Hyundai Motor Company, as we lay the foundation for a new era of future mobility and technological innovation. "Through our joint venture, we hope to contribute to the development of talent in the region with advanced skills and capabilities under Saudi Vision 2030." Wongyun Park, vice president and CEO of Hyundai Motor Manufacturing Middle East, said: "With HMMME, we are driving change forward and paving the way for a new industrial future in the region. The facility will become a platform for growth and industrial excellence in the heart of the Kingdom." HMMME is building a foundation for a new era of automotive manufacturing in Saudi Arabia. Harnessing the skills of the local workforce, the new manufacturing plant will create thousands of jobs and allow for knowledge transfer and skills development. The localization of Hyundai's vehicles will accelerate the growth of Saudi Arabia's automotive and mobility ecosystem and pave the way for a new industrial future. This partnership is one in a series of PIF initiatives establishing Saudi Arabia as a global automotive player. Together, these initiatives are driving transformation in the sector and boosting domestic manufacturing capabilities, infrastructure, and supply chains.
Asharq Al-Awsat
15-05-2025
- Automotive
- Asharq Al-Awsat
Alkhorayef: Saudi Arabia Making Confident Strides Toward Localizing Automotive Industry
Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef has said the Kingdom is making 'confident strides' at an accelerated pace to localize the automotive industry. Alkhorayef spoke on Wednesday at the groundbreaking ceremony for the Hyundai plant at King Salman Automotive Cluster in King Abdullah Economic City in Jeddah. He said the Kingdom's efforts will create added value for the national economy and enhance its global competitiveness in line with the objectives of Saudi Vision 2030. The plant is being built under a strategic partnership between the Public Investment Fund (PIF) and Hyundai Motor Company, a move that supports the localization of the automotive industry in the Kingdom and advances economic diversification. The minister described the initiative as an important milestone in the journey to localize the automotive industry due to its significant impact. He added that it will enhance industrial capabilities, strengthen supply chains, localize production, and develop local content, meeting local and regional demand for automobiles and consolidating the Kingdom's position as a global hub for the automotive industry. He praised PIF's role in driving industrial transformation and empowering high-value sectors with tangible economic impact in the Kingdom and the region. He also highlighted the importance of integrated efforts by all relevant government entities in advancing the localization of the automotive industry, including the establishment of the Hyundai plant. He thanked the Ministries of Investment, Energy, and Finance; the Ministry of Economy and Planning; the National Industrial Development Center; and the Saudi Industrial Development Fund. Alkhorayef stressed that the project aligns with the Kingdom's accelerating industrial goals and its vision to transform ambitions into reality. The National Industrial Strategy aims to attract three global automotive manufacturers to produce 300,000 vehicles annually within a single industrial complex, a goal now realized with Hyundai joining Lucid and Ceer. The factory is projected to produce 50,000 vehicles annually and contribute approximately $5 billion to the Kingdom's gross domestic product (GDP) by 2045. Hyundai has had a presence in the Saudi market for over 40 years and currently holds the second-largest market share in the Kingdom's automotive sector.
