Saudi Arabia’s Ministry of Industry and Mineral Resources signed a memorandum of understanding (MoU) with South Korea’s Hyundai Motor Company to build an assembly plant based on CKD [Completely Knocked Down] system for electric and internal combustion engine cars in the Kingdom, state-owned SPA news agency reported.

The MoU aims to strengthen joint cooperation in the automotive industry across the region to deliver the national industrial strategy and develop local manufacturing capabilities in line with Vision 2030.

“The memorandum signals sitting down at the same table to discuss future plans,” a Hyundai Motor official told The Korean Herald newspaper on condition of anonymity.

The source added that the exact size and construction timing of Hyundai’s new assembly plant in Saudi is yet to be finalised.

In May 2022, the ministry had announced that Saudi Arabia aims to manufacture 300,000 vehicles in domestic factories by 2030.

(Writing by D Madhura; Editing by Anoop Menon)