KG Parts Partners Enter Saudi Market... "Supporting the First Local Complete Vehicle Ecosystem"

KG, Parts Suppliers & Saudi National Car Company MOU
"New Market Entry + Securing Future Growth Engines"

A domestic partner company supplying automotive parts to KG Mobility is entering Saudi Arabia. KG is exporting semi-knockdown (KD) products to Saudi Arabia and has rolled up its sleeves to establish a local automotive industry supply chain accordingly. This is regarded as an excellent example of economic cooperation between the two countries.

KG Mobility announced on the 23rd that it participated in the Middle East economic delegation during the state visit organized by the Korean Economic Association, along with its parts partner companies. The company signed a memorandum of understanding (MOU) with Saudi National Automobiles Manufacturing Co. (SNAM), a Saudi state-owned automobile company, to establish a parts supply chain together with its partners.

Kwak Jae-sun, Chairman of KG Mobility (eighth from the right), visited the Jubail Industrial Complex with representatives from the local KD business partner, the Saudi state-owned automobile company, and parts suppliers.
[Photo by KG Mobility]

Kwok Jae-sun, Chairman of KG Mobility, who accompanied the Middle East economic delegation, attended the Saudi Business Forum held in Riyadh together with partner companies. They signed the MOU with SNAM and visited the Jubail Industrial Complex.

This MOU is part of the KD cooperation project with KG Mobility. SNAM plans to create a parts cluster within the Jubail Industrial Complex to establish a smooth local assembly production system. KG Mobility also aims to ensure high-quality parts supply and quality stabilization through the entry of domestic parts partners into Saudi Arabia.

Previously, KG Mobility signed product license agreements with SNAM in 2019 and the following year for the local KD business. Last year, they signed a KD supply contract. After starting mass production, they plan to supply a total of 169,000 units, including 90,000 Rexton Sports & Khan and 79,000 Rexton New Arena vehicles over seven years.

Kwak Jae-sun, Chairman of KG Mobility (from the right), Bang Moon-kyu, Minister of Trade, Industry and Energy, and Fad Aldohishi, CEO of SNAM, are taking a commemorative photo on the 22nd (local time).
[Photo by KG Mobility]

SNAM secured land within the industrial complex last year and began construction of Saudi Arabia's first automobile factory. According to company officials, production is expected to start as early as the end of this year. From this year, local assembly production for the first phase (SKD production) project will begin, and a factory will be built for the second phase (CKD) project. If the plan proceeds as scheduled, annual production will increase to about 30,000 units.

Chairman Kwok said, "This cooperation project is significant for KG Mobility as it represents entry into a new market and securing future growth engines; for partner companies, it offers opportunities to enter the global market; and for SNAM, it is Saudi Arabia's first automobile factory. We will do our best to provide technical support, workforce training, high-quality parts supply, and quality stabilization so that all parties can prosper together."

This content was produced with the assistance of AI translation services.