Hyundai Motor on May 14 holds the groundbreaking ceremony for its first plant in the Middle East at the King Salman Automotive Cluster in King Abdullah Economic City, Saudi Arabia. (Hyundai Motor Group)

By Yoo Yeon Gyeong 

Hyundai Motor will build its first plant in the Middle East in cooperation with Saudi Arabia's Public Investment Fund (PIF).

Through this project, the carmaker aims to lay the basis to become a leading brand in Saudi Arabia, and the Arab country seeks to set a major milestone in the development of its automotive industry.

Hyundai Motor on May 15 said it held a groundbreaking ceremony on May 14 for the plant of Hyundai Motor Manufacturing Middle East (HMMME) at the King Salman Automotive Cluster in King Abdullah Economic City.

The event attracted over 200 key figures and officials from both countries including Saudi Minister of Industry and Mineral Resources Bandar Ibrahim Al-Khorayef, PIF Deputy Gov. Yazeed A. Alhumied, acting Ambassador to Saudi Arabia Moon Byung-Jun, and Chang Jaehoon, vice chairman of Hyundai Motor Group.

The project is a joint venture between Hyundai Motor, which holds a 30% stake, and PIF (70%). The plant's expected annual capacity is 50,000 units of internal combustion engine and electric vehicles, with mass production set to start in the fourth quarter of next year.

Under its national development plan Vision 2030, Saudi Arabia seeks to diversify its economy beyond its oil-centric structure to other sectors like manufacturing, hydrogen energy and smart mobility.

"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," Vice Chairman Chang said. "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."

dusrud21@korea.kr