Ssangyong Motor, KG Group, and SNAM Strengthen Business Cooperation in Saudi Arabia

Chairman Kwak Jaeseon Holds Meeting with SNAM Corporation

[Asia Economy Reporter Kiho Sung] SsangYong Motor announced on the 29th that the CEO of SNAM, its partner company in Saudi Arabia, visited Korea and held a meeting with KG Group Chairman Kwak Jae-sun, who officially took office as SsangYong Motor Chairman on the 1st, solidifying mutual cooperation in the Saudi business.

At the meeting held at KG Tower that day, SsangYong Motor Chairman Kwak Jae-sun, manager Jeong Yong-won, SNAM CEO Fad Al-Dohishi, and other officials from SsangYong Motor and SNAM attended to discuss the progress of the KD cooperation project and ways to strengthen mutual cooperation.

Additionally, through this visit, SNAM placed orders for equipment for the construction of the Saudi assembly plant and installation of production equipment, and also held consultations with SsangYong Motor’s major parts suppliers regarding future localization of parts in the region.

SsangYong Motor and SNAM signed a Product License Agreement (PLA) for the Rexton Sports & Khan in 2019 and for the Rexton in 2020 for the KD business, and in January this year, they signed a Parts Supply Agreement (PSA) for local parts supply in Saudi Arabia.

Accordingly, SNAM secured a complete vehicle production site in the Jubail Industrial Complex and held a groundbreaking ceremony for the local assembly plant in January this year. They plan to start the first phase of local assembly production from 2023 and expand production to about 30,000 units annually through factory construction for the second phase of the project.

SsangYong Motor plans to export a total of 169,000 units over seven years after SNAM starts mass production, including 90,000 units of the New Rexton Sports & Khan and 79,000 units of the All New Rexton.

SsangYong Motor stated, “Establishing a local KD production base with Saudi Arabia’s SNAM is a new breakthrough for expanding export volumes,” and added, “Now that we have a solid support base as a member of KG Group, we plan to continuously expand sales by strengthening global market strategies such as diversifying export markets.”