South Korean SUV maker KG Mobility, formerly known as Ssangyong Motor, has signed a memorandum of understanding (MOU) with Saudi National Automotive Manufacturing (Snam) to help establish an automotive component supply chain in the country.
KG Mobility executives are part of a business delegation accompanying South Korean President Yoon Suk Yeol on this week’s state visit to Saudi Arabia which coincided with a global investment summit held in Riyadh.
KG Mobility had previously signed an agreement with SNAM to supply 169,000 Rexton SUV KD kits over seven years for local assembly with limited volume build scheduled to begin at a plant on the east coast this year.
Last year, SNAM acquired a 1m sq m plot in Jubail Industrial City to build Saudi Arabia’s first vehicle assembly plant, expected to produce 30,000 vehicles per year once fully operational.
The company also plans to establish a component manufacturing cluster on the site, with KG Mobility assistance, and commitment to produce high quality parts and establish an effective quality control system.
Earlier this week, Hyundai Motor said it had agreed to establish a joint venture with the Saudi Public Investment Fund (PIF) to build a “highly-automated” vehicle assembly plant in the Kingdom with capacity for 50,000 internal combustion engine and electric vehicles per year from 2026.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData