Latest news with #KingSalmanAutomotiveCluster
Zawya
21-05-2025
- Automotive
- Zawya
Saudi Arabia's PIF and Hyundai Motor Company break ground on automotive manufacturing facility in KAEC
Saudi Arabia continues to make significant steps towards its Vision 2030 goals with the announcement that construction has begun on a new state-of-the-art automotive plant at the King Salman Automotive Cluster, thanks to a landmark partnership between the Public Investment Fund (PIF) and Hyundai Motor Company. Kingdom of Saudi Arabia: Saudi Arabia's Public Investment Fund (PIF) and Hyundai Motor Company begun work to establish a state-of-the-art automotive manufacturing facility at King Salman Automotive Cluster, marking a pivotal moment in the development of Saudi Arabia's automotive sector, and in its ambitions to become a leading regional hub for advanced industrial manufacturing. The new facility reflects a longstanding relationship between Saudi Arabia and Hyundai, spanning over four decades. With a projected annual capacity of 50,000 vehicles aimed at servicing the Saudi market, the plant will manufacture both internal combustion engines (ICE) and electric vehicles (EVs). Hyundai has consistently maintained a prominent position within Saudi's automotive market, achieving one the largest market shares in the first quarter of 2025. Recognizing both the loyalty of the Kingdom's consumers to the Hyundai brand and the company's extensive knowledge of the local market, discussions regarding the creation of a manufacturing plant began as early as 2017. The project continued to gain momentum within the framework of the National Industrial Strategy (NIS), launched in 2022, to unlock new opportunities across strategic industrial sectors, with the automotive industry identified as one of its key priorities. The National Industrial Strategy set a clear objective: to attract three to four original equipment manufacturers (OEMs), capable of producing more than 300,000 vehicles annually within a centralized automotive cluster. This vision is now being realized through the development of the King Salman Automotive Cluster at King Abdullah Economic City, which already facilitates key partnerships with Lucid Motors and Ceer, alongside the newly announced Hyundai facility. The advanced manufacturing plant is expected to have a transformative economic and social impact on the Kingdom. The facility is projected to contribute an estimated USD 5 billion to the Kingdom's gross domestic product (GDP) by 2045. These include direct positions within the manufacturing operation, as well as indirect and induced employment opportunities across the broader automotive supply chain and associated industries. The facility will also play a central role in supporting the Kingdom's broader goals of localizing industrial production, enhancing local content, and advancing supply chain capabilities. The Local Content and Government Procurement Authority will serve as a strategic partner in ensuring the integration of Saudi-made vehicles into the mainstream market, by procuring goods directly from manufacturers. Furthermore, the facility will contribute to the Kingdom's ambition to develop a competitive, export-oriented automotive industry, serving both local demand and regional markets. Throughout the last five years, the Ministry of Industry and Mineral Resources has played an instrumental role in the formation of this partnership, under the leadership of His Excellency Bandar AlKhorayef, who personally led negotiations with Hyundai, overseeing all components of the deal. His Excellency worked to ensure that the right policies, incentives, and industrial enablers were established to secure the long-term success of the project. In parallel, the Ministry actively engaged with global and local suppliers, to strengthen the automotive supply chain and support the broader localization objectives of Vision 2030. In December 2022, the Ministry signed a Memorandum of Understanding with Hyundai aimed at enhancing cooperation in automotive manufacturing. This agreement laid the initial groundwork for the establishment of the new plant, aligning national industrial priorities, with Hyundai's global capabilities. Later, in 2023, His Excellency concluded a series of high-level meetings in South Korea with the senior leadership of Hyundai Motoring Company and Hyundai Heavy Industries. The visit focused on advancing joint investment opportunities, finalizing plans for the new manufacturing plant, and strengthening industrial and mining sector partnerships. This milestone for both Saudi Arabia and Hyundai, has also been made possible through the collaborative efforts of multiple government entities and private sector stakeholders, including the Ministry of Industry and Mineral Resources, the National Industrial Development Center, the Ministry of Energy, the Ministry of Finance and the Ministry of Economy and Planning. Each institution has played an instrumental role in facilitating this significant project, ensuring its alignment with national industrial priorities and creating a conducive environment for its successful execution. Most notably, PIF continues to serve as a primary enabler of the automotive sector in the Kingdom, delivering targeted investments aimed at unlocking high-impact opportunities for economic growth and job creation. In the partnership with Hyundai, PIF holds a 70% stake, reaffirming the authority's commitment to advancing Saudi Arabia's automotive sector and its dedication to making the goals of Vision 2030 a reality. Hyundai's decision to invest in Saudi Arabia reflects the company's confidence in the strength and resilience of the Saudi market, as well as the Kingdom's growing role as a destination for advanced manufacturing. This facility will enable Hyundai to better serve its loyal customer base in the Kingdom and the wider region, while contributing to the long-term sustainability and competitiveness of Saudi Arabia's automotive sector. This announcement represents more than just another manufacturing facility in the Kingdom; it signifies the beginning of a new era for Saudi Arabia's automotive sector. As Saudi Arabia continues to attract global industry leaders and invest in key sectors, projects such as the Hyundai facility reaffirm Saudi Arabia's position as a high-value, globally competitive hub.
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.
Argaam
15-05-2025
- Automotive
- Argaam
Hyundai breaks ground on new factory in King Salman Automotive Cluster
Hyundai Motor Manufacturing Middle East (HMMME) broke ground on its new factory in Saudi Arabia's King Salman Automotive Cluster within King Abdullah Economic City (KAEC). The facility is Hyundai Motor's first manufacturing plant in the Middle East. Production is scheduled to begin in the fourth quarter of 2026, with an annual capacity of up to 50,000 vehicles, including internal combustion engine vehicles and electric vehicles. According to data compiled by Argaam, the Public Investment Fund (PIF) and Hyundai Motor Co. signed a joint venture agreement in October 2023 to establish a highly automated vehicle manufacturing plant in the Kingdom. PIF holds a 70% stake in HMMME, while Hyundai Motor owns the remaining 30%. In November, Emaar The Economic City signed a 20-year land lease agreement with HMMME for a plot in the Industrial Valley's special economic zone. The SAR 175.7 million deal covers the construction and operation of a facility for assembling vehicles and manufacturing auto parts.
Zawya
15-05-2025
- Automotive
- Zawya
PIF's Joint Venture with Hyundai Motor Company, HMMME, celebrates groundbreaking milestone
The new facility is a joint venture between PIF and Hyundai Motor Company The plant will manufacture internal combustion engine and electric vehicles, with an annual production target of 50,000 vehicles to supply Saudi Arabia KAEC, Saudi Arabia: Hyundai Motor Manufacturing Middle East (HMMME), a joint venture between PIF and Hyundai Motor Company, today hosted its groundbreaking ceremony in the recently announced King Salman Automotive Cluster within King Abdullah Economic City (KAEC). The ceremony is a significant milestone that marks another step in the development of the automotive industry in the Kingdom of Saudi Arabia. PIF owns a 70% stake in HMMME, with Hyundai holding the remaining 30%. 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 engine (ICE) and electric vehicles (EV). 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 of Saudi Arabia 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. ABOUT HMMME Established in 2024, Hyundai Motor Manufacturing Middle East (HMMME) is a joint venture between Public Investment Fund (PIF) and Hyundai Motor Company. HMMME is a pioneering vehicle manufacturing committed to redefining mobility through innovation, sustainability, and advanced vehicle technologies. With a core focus on producing vehicles that meet the evolving demands of modern transportation and consumers, our manufacturing operations are rooted in quality, safety, and performance, reflecting our ambition to lead the future of mobility from the heart of the Middle East. HMMME is contributing to a vision of smarter, more connected communities, creating long-term value for our stakeholders and establishing trust with our customers through purpose-driven innovation and industrial excellence. Contact: Rami Yun Hyundai Motor Manufacturing Middle East (HMMME)
Trade Arabia
11-02-2025
- Automotive
- Trade Arabia
Saudi PIF to develop new automotive cluster in KAEC
Saudi Arabia's sovereign wealth fund PIF has announced plans to develop an exclusive cluster for automotive manufacturing activities within the King Abdullah Economic City (KAEC). The new King Salman Automotive Cluster will be a major centre for the automotive sector and will have headquarters and factories for local and international companies, said a statement from PIF. Notable companies include Ceer, the first Saudi electric car brand, and Lucid Motors, which opened its first international factory in KAEC in 2023. It will also host several PIF joint projects with global manufacturers, including Hyundai Motor – establishing a highly automated factory for manufacturing cars in Saudi Arabia – and a joint venture agreement with Pirelli to establish a tire factory locally, it stated. His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister, today (February 10) designated it as King Salman Automotive Cluster, in a move that is seen as a crucial step in Saudi Arabia's economic diversification. It will help create optimal investment opportunities for the private sector to develop promising sectors in Saudi Arabia. The hub will be an enabler for the automotive sector and sustainable transportation; contributing to raising non-oil GDP and increasing exports. According to PIF, the cluster will enhance the automotive sector in Saudi Arabia by accelerating the growth of local capacity in manufacturing and sector-related research and development, and by making supply chains to serve regional and international markets more efficient. The cluster aims to create optimal investment opportunities for the private sector to develop promising sectors in Saudi Arabia. It is expected that the cumulative GDP contribution from companies operating in King Salman Automotive Cluster will hit SAR92 billion ($24.5 million) by 2035. The cluster will also contribute to the creation of many direct and indirect jobs, support the local manufacturing sector, and increase Saudi exports to regional and global markets, which will positively impact the national balance of payments, said the statement. King Salman Automotive Cluster will leverage the supportive environment and investment incentives provided by KAEC, including its logistical infrastructure, and its proximity to a highly developed port in a vital location for global trade. These factors will provide opportunities for the local private sector and international companies to engage as partners, suppliers, and investors in the automotive sector and its related services, it added.-
