Business

Saudi EV Maker Ceer Awards $1.3 Billion Contract for Construction of Manufacturing Complex

Ceer, Saudi Arabia’s first electric vehicle (EV) brand and original equipment manufacturer (OEM), has awarded a $1.3 billion contract for the construction of the Ceer Electric Vehicle Manufacturing Complex in King Abdullah Economic City in the Kingdom.

The contract has been awarded to Saudi company Modern Building Leaders (MBL) to build a state-of-the-art facility, spanning over 1 million sq m, and will have an area under roof of 530,000 sq m.

It will include dedicated zones for every stage of vehicle production, including a press shop, body shop, paint shop, and general assembly.

Additionally, the complex will feature dedicated zones for logistics, waste management, warehouses, offices, water treatment system and a vehicle test track.

Ceer, a joint venture between the Kingdom’s sovereign wealth fund PIF and Foxconn, was launched to support the electric vehicle sector, aligned with Saudi Arabia’s Vision 2030 aspirations for economic diversification, carbon emission reduction, and sustainable development.

Benchmark for Industrial Excellence

Jim DeLuca, CEO of Ceer, said that they were delighted to witness the realisation of their vision to ignite Saudi Arabia’s mobility industry, beginning with the construction of the Ceer Electric Vehicle Manufacturing complex, which will be a benchmark for industrial excellence within the region and globally.

“The complex will feature the best technologies, equipment, and people, supported by partnerships with global industry leaders such as Dürr, Schuler, Siemens, ABB, and many more, Deluca said.

Ceer is committed to designing, manufacturing, and supplying technologically sophisticated electric sedans and SUVs, leveraging advanced systems from Foxconn and BMW, all from its base of operations in King Abdullah Economic City, Saudi Arabia.

Ceer will produce electric vehicles in Saudi Arabia, and will design, manufacture and sell a range of vehicles for consumers in the Kingdom as well as in the MENA region, including sedans and sports utility vehicles.

A part of PIF’s strategy to diversify Saudi Arabia’s GDP growth by investing in promising growth industries, Ceer will attract over $150 million of foreign direct investment, and create tens of thousands of direct and indirect jobs.

Ceer is projected to directly contribute $8 billion to Saudi Arabia’s GDP by 2034. The company, which is a joint venture between PIF and Hon Hai Precision Industry Co. (Foxconn), will license component technology from BMW for use in the vehicle development process.

Foxconn will develop the electrical architecture of the vehicles, resulting in a portfolio of products that will lead in the areas of infotainment, connectivity and autonomous driving technologies. Each vehicle will be designed and manufactured in Saudi Arabia and tested to the highest global automotive quality control and safety standards.

Global Business Magazine

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