HYUNDAI BREAKS GROUND ON FIRST MIDDLE EAST PLANT IN SAUDI ARABIA

SEOUL, May 15 (Bernama-Yonhap) -- Hyundai Motor Co has broken ground on its first manufacturing plant in the Middle East, marking a significant milestone in the South Korean automaker’s global expansion, Yonhap news agency reported.

The groundbreaking ceremony for Hyundai Motor Manufacturing Middle East (HMMME) was held on Wednesday at the King Salman Automotive Cluster within King Abdullah Economic City (KAEC) in Saudi Arabia, the company said in a statement Thursday.

HMMME is a joint venture between Hyundai Motor and Saudi Arabia’s Public Investment Fund (PIF), with a 30:70 ownership structure.

Production is expected to begin in the fourth quarter of 2026, with an annual capacity of 50,000 units comprising electric vehicles (EVs) and internal combustion engine models.

The facility forms part of Saudi Arabia’s strategy to develop its domestic automotive industry, with the King Salman Automotive Cluster envisioned as the kingdom’s future manufacturing hub.

Over 200 officials and dignitaries from both countries attended the ceremony, including Saudi Industry Minister Bandar Alkhorayef and Hyundai Motor Group Vice Chairman Chang Jae Hoon.

Chang said the groundbreaking represents the start of a new era for Hyundai and Saudi Arabia, and expressed confidence that the new plant will support the kingdom’s Vision 2030 goals by nurturing local talent with advanced mobility expertise.

“Today’s groundbreaking marks the beginning of a new chapter for both Saudi Arabia and Hyundai Motor, as we lay the foundation for a new era of future mobility and technological innovation,” he said.

Hyundai Motor said the plant is expected to create thousands of jobs in Saudi Arabia, facilitate knowledge transfer, and strengthen the local industrial base.

“The localisation 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,” the company said.

As part of its Vision 2030 strategy, Saudi Arabia is actively promoting the development of non-oil sectors, including automotive manufacturing, as part of efforts to diversify its economy.

Hyundai is also working to establish a hydrogen mobility ecosystem in Saudi Arabia, in collaboration with the Korea Automotive Technology Institute, Air Products Qudra, and the Saudi Public Transport Company.

-- BERNAMA-YONHAP