Riyadh, The Ministry of Industry and Mineral Resources has signed a memorandum of understanding with Hyundai Motor Company, the global provider of smart transport solutions, in the presence of Minister of Industry and Mineral Resources Bandar Al-Khorayef, Minister of Economy and Planning Faisal Al-Ibrahim, Deputy Minister of Industry and Mineral Resources Eng. Osamah Al-Zamel, CEO of the Saudi Industrial Development Fund Dr. Ibrahim Al-Mojel and Hyundai Motor Company Executive Vice President and Head of Global Operations Division Seon Seob Kim.
The memo aims at enhancing cooperation in vehicle manufacturing in the region in a way that realizes the national strategic goals for industry in developing local manufacturing capabilities and in line with the targets of the Saudi Vision 2030 that seeks to diversify the economic base in the Kingdom of Saudi Arabia.
The MoU stipulates planning for building a Saudi Arabia-based assembly plant with the CKD system for electric cars and internal combustion engines cars, after Hyundai showed high interest and plans to explore joint investment opportunities with the Kingdom of Saudi Arabia to achieve entrepreneurship in businesses and projects that guarantee environment safety and sustainability.
The Saudi National Industry Strategy seeks to localize the vehicle sector and increase investment opportunities in the sector, where light cars sales rates are expected to increase in the Kingdom by 2.2% during the upcoming decade, expecting the localization of the sector to yield big benefits to the Kingdom, where it represents a regional opportunity considering the volume of the light vehicle market and expectations that show a double increase rate compared to the international rate over the next 10 years.
The Kingdom is interested in developing this sector that will lead to attracting and developing the workforce with focus on products with high added value.
Source: Saudi Press Agency
