|01 August, 2018

Jordan to build $1.5bln car plant

Plant will produce 50,000 cars a year.

Chrysler auto assembly workers work on the line assembling Jeep Grand Cherokees and Dodge Durangos at the Chrysler Jefferson North Assembly plant in Detroit, Michigan April 26, 2012. Image used for illustrative purposes.

Chrysler auto assembly workers work on the line assembling Jeep Grand Cherokees and Dodge Durangos at the Chrysler Jefferson North Assembly plant in Detroit, Michigan April 26, 2012. Image used for illustrative purposes.

Reuters/Rebecca Cook

Jordan has signed an agreement with a local company for the construction of a car production plant at a cost of around $1.5 billion.

The project will be set up in the Southern economic zone of Aqaba and will produce nearly 50,000 cars a year, the Arabic language daily Al-Rai said.

Jordan's Siag Arabian Auto Manufacturing Company will build the plant under an agreement signed with Aqaba Special Economic Zone Authority on Tuesday.

"Work on the first phase of the project will begin early next year... it will cost about $450 million and will be completed within two years," the authority's chairman Nasser Al-Sharida was quoted as saying.

He said the plant would produce Jeep SUV vehicles in its first stages before it is expanded to manufacture larger vehicles, including 25-passenger mini-buses and 50-seater buses run by Toyota engines.

Total investments in the project are expected to reach nearly six billion dollars after the first six years of operation, he added.

(Writing by Nadim Kawach; Editing by Shane McGinley)

(shane.mcginley@thomsonreuters.com)

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