By Tala Ramadan
DUBAI (Reuters) -Saudi Arabia is exploring with global car maker Stellantis and Saudi auto products and services conglomerate Petromin Corporation, setting up vehicle manufacturing in the Gulf country, it said on Thursday.
Saudi Arabia’s Ministry of Investment, the National Industrial Development Center (NIDC) and the two companies signed a memorandum of understanding to evaluate the potential for developing a manufacturing plant to localize both commercial and passenger vehicle production, the partners said in a joint statement on Thursday, without providing financial details.
The partnership is intended to support the kingdom’s Vision 2030 plan launched in 2016 to diversify the economy away from oil, stimulate investment and private sector growth, and modernise economic and social infrastructure.
“The project aims to increase localization rates within the vehicle sector, contributing to the growth and sustainability of the automotive industry in Saudi Arabia kingdom,” the partners said, adding Petromin “is a prospective investor in the initiative.”
The preliminary deal was signed during an investment forum in Washington amid a visit to the White House by Saudi Arabian Crown Prince Mohammed bin Salman, where officials touted billions of dollars in new investments and growing financial ties between the two countries.
(Reporting by Tala Ramadan;Editing by Elaine Hardcastle)
