SEOUL: Hyundai Motor Co. has commenced construction of its first manufacturing facility in the Middle East, marking a major milestone in the company’s global expansion strategy. The new plant, named Hyundai Motor Manufacturing Middle East (HMMME), is located at the King Salman Automotive Cluster within King Abdullah Economic City (KAEC), Saudi Arabia.
HMMME is a joint venture between Hyundai Motor and Saudi Arabia’s Public Investment Fund (PIF), with a 30-70 stake distribution. Set to begin production in the fourth quarter of 2026, the facility is designed to produce 50,000 units annually, including both electric vehicles (EVs) and internal combustion engine models.
The establishment of HMMME aligns with Saudi Arabia’s broader strategy to foster a domestic automotive industry. As part of the Vision 2030 initiative, the plant is expected to support the kingdom’s ambition to diversify its economy beyond oil dependence by promoting local manufacturing and technological innovation.
The groundbreaking ceremony, held on Wednesday at KAEC, was attended by over 200 dignitaries, including Bandar Alkhorayef, Saudi Arabia’s Industry Minister, and Chang Jae-hoon, Vice Chairman of Hyundai Motor Group. Chang highlighted the significance of the project, stating, “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.”
Yazeed Alhumied, Deputy Governor of PIF, praised the collaboration as a demonstration of the fund’s commitment to building local expertise, attracting advanced technology, and creating skilled jobs within the kingdom’s automotive and mobility sector.
The plant is expected to generate thousands of jobs and facilitate knowledge transfer, fostering local talent development in automotive manufacturing. The localization of Hyundai’s production is also anticipated to boost Saudi Arabia’s automotive and mobility ecosystem, positioning the country as a key player in the regional automotive industry.
Additionally, Hyundai plans to establish a hydrogen mobility ecosystem in Saudi Arabia in partnership with the Korea Automotive Technology Institute, Air Products Qudra, and the Saudi Public Transport Company. This initiative includes creating a hydrogen mobility environment, piloting hydrogen electric buses, and collaborating on government-backed research projects.
By establishing this manufacturing base, Hyundai Motor is positioning itself as a crucial contributor to Saudi Arabia’s Vision 2030. The company aims to leverage local talent and advanced technologies to support the kingdom’s goal of becoming a global hub for automotive innovation.
-Yonhap
