Saudi: Ssangyong, SNAM ink local production deal
Saudi National Automobile Manufacturing Co has signed a licensing contract with Ssangyong Motor to manufacture vehicles locally in Saudi Arabia
Ssangyong Motor has signed a licencing contract for automotive parts with Saudi National Automobile Manufacturing Co (SNAM).
Under the terms of the agreement, Ssangyong will provide technological assistance to SNAM in building an auto production factory, localising car parts, and training technicians, according to Yonhap.
The deal will enable the South Korea-based automobile manufacturer to produce vehicles locally in Saudi Arabia from 2020.
SNAM, an affiliate of Safari Group, has obtained a 1km2 area in Jubail, an industrial city in Saudi Arabia, to construct an auto manufacturing plant, and an additional facility of the same size for car parts suppliers.
SNAM is the first auto firm to be established as part of Saudi Arabia's long-term National Industrial Development Program, part of which focusses on fostering growth within the country's automotive industry.
If everything proceeds as planned, Ssangyong's premium pickup trucks will be assembled at the Saudi factory from 2020. The goal is to be able to manufacture 25,000 vehicles annually through gradual production increases.
Ssangyong said in statement that its components suppliers will also be able to expand into Saudi Arabia through an auto parts cluster established within the Jubail complex.
Ssangyong Motor is a local unit of Indian carmaker Mahindra & Mahindra Ltd.