[Photo provided by Ssangyong Motor Co.]
Ssangyong Motor Co., a Korean SUV-focused producer under the ownership of India’s Mahindra & Mahindra Ltd., will turn out Rexton Sports and Rexton Sports Khan sports utility vehicles in Saudi Arabia in 2021.
The automaker said Thursday that it has entered into an agreement with Saudi National Automobiles Manufacturing Co. (SNAM) to assemble its knockdown units into complete vehicles at SNAM`s plant. Under the agreement, SNAM will assemble up to 30,000 units of Ssangyong Motor’s two SUV models at its plant starting 2021.
This contract was signed as part of the Saudi government’s “Saudi Vision 2030” initiative to reduce the country’s heavy dependence on oil and diversify its economy by nurturing other sectors such as the automobile industry. It is reported that SNAM already has secured 100,000 square meters of land in Jubail industrial complex, eastern Saudi Arabia for auto production. The Saudi company plans to create an automotive cluster in the industrial park.
Ssangyong Motor"s Rexton Sports Khan SUV
Ssangyong Motor said it will be collaborating with SNAM on building automotive assembly plants as well as providing technical supports. It will also bring Korean auto parts companies in to ensure steady supply of quality auto parts to the cluster.
This project is also expected to help the Korean automaker to diversity its customer base by making inroads into new markets.
“The company expects to further expand its presence in the Middle Eastern automotive market through its partnership with SNAM,” said Yea Byung-tae, Ssangyong Motor president and chief executive officer. “We will continue to work to expand our share across the global market by diversifying export markets.”
By Lee Jong-hyuk and Cho Jeehyun
[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]