A Hyundai Motor official stated that recent Houthi attacks on Saudi oil facilities did not damage the construction site of the company's new factory. The attacks, supported by Iran, targeted oil refining facilities in Saudi Arabia. According to the official, the factory site, located near the attacked area, sustained no damage and its employees were unharmed.
The Houthi rebels claimed responsibility for the October 5 attacks on Riyadh's airport and an Aramco refinery in Rabigh. The Hyundai Motor factory is being built at the King Salman Industrial Complex for Automotive Manufacturing, approximately 40 kilometers south of Rabigh. However, employee accommodations are located in Rabigh, where some staff witnessed the attacks.
Hyundai Motor is collaborating with the Saudi Public Investment Fund to establish its first production base in the Middle East. The company began construction in May last year, with plans to start operations in the fourth quarter of 2026. The factory will have an annual production capacity of 50,000 electric and internal combustion engine vehicles.
The attacks did not disrupt the factory's construction, but Hyundai Motor is closely monitoring the situation. The company's employees were either in their accommodations or traveling to and from the construction site when the attacks occurred. No further details were provided on the current construction status or potential future impacts.
The Houthi rebels have been involved in a longstanding conflict in Yemen, with recent attacks targeting Saudi Arabian infrastructure. The incident highlights the complexities and risks associated with operating in the region. Hyundai Motor's investment in the Saudi factory demonstrates the company's commitment to expanding its global presence.
The new factory will contribute to Saudi Arabia's efforts to diversify its economy and reduce its reliance on oil exports. The project is part of the country's Vision 2030 plan, which aims to increase the private sector's contribution to the economy and create new job opportunities.
Hyundai Motor's Saudi factory is expected to play a significant role in the company's global strategy, particularly in the Middle Eastern market. The company's focus on electric vehicles aligns with the region's growing demand for sustainable transportation solutions. Key aspects of the project include its strategic location, collaboration with local partners, and planned production capacity.
Key points
- Hyundai Motor's new Saudi factory remains undamaged after recent Houthi attacks on nearby oil facilities.
- The factory is being built in collaboration with the Saudi Public Investment Fund and is expected to start operations in 2026.
- The project is part of Saudi Arabia's Vision 2030 plan to diversify its economy and reduce its reliance on oil exports.
