Jaguar Land Rover (JLR), the UK's leading manufacturer of premium vehicles has signed a letter of intent which it is hoped will pave the way for an automotive partnership in Saudi Arabia.
Saudi Arabia's National Industrial Clusters Development Program (NICDP) Mr. Azzam Yaser Shalabi the President of the National Industrial Clusters Development Program (NICDP) and Dr Ralf Speth, JLR Chief Executive Officer formally signed a Letter of Intent yesterday, which could pave the way for an automotive partnership in the Kingdom of Saudi Arabia.
According to a statement released by Jaguar, HRH Prince Faisal Bin Turki bin Abdul Azi Al Saud and the Saudi Arabian Government has expressed its intention to initiate, develop and support the automotive industries and see JLR as a potential partner to help strengthen their industrialisation plans.
One incentive for JLR’s movement into Saudi is the construction of the world's largest integrated aluminium complex, a joint venture between Saudi Arabian Mining Company and Alcoa of the US, is due to begin production in 2014 at the Ras Al Khair facility. The plant would offer opportunities in aluminium component production – an area in which Jaguar Land Rover is considered a leader.
A new plant in Saudi Arabia would follow add to JLR’s plans for overseas plants, after the company committed to a £1.1bn investment deal with Chery Automobile Company to manufacture vehicles at a new plant near Shanghai, China, and the separate expansion of the Jaguar Land Rover assembly at the company's plant at Pune, India.
JLR made a record £1.5bn profit in the year ending March 2012, despite the eurozone crisis which has hit many of the volume car makers
Dr Ralf Speth, Chief Executive of JLR, said: "We are committed to further international partnerships to meet record demand for our highly sought after vehicles. The Kingdom of Saudi Arabia is an attractive potential development option, complementing our existing advanced facilities in Britain and recent manufacturing plans to expand in other countries including India and China."
Pending agreement on development options in the Kingdom of Saudi Arabia, Jaguar Land Rover would expect to announce further plans in 2013. Issues such as level of investment, potential capacity and job creation have not yet been discussed in detail between the parties.