Ceer EV plant to be built in Emaar EC in $95m deal
Emaar The Economic City has announced the sale of an industrial plot to Ceer National Automotive Co. to build a specialized factory for electric vehicles in a move that will create thousands of highskilled jobs.
The deal was valued at SR359.04 million ($95.53 million), which Ceer will pay Emaar EC in installments over 15 years, the company said in a statement to Tadawul. The asset book value stood at SR19 million. Once complete, the manufacturing facility will create thousands of direct and indirect high-skilled jobs, the majority of which will be filled by Saudi nationals. Construction at the site will begin in early 2023.
Ceer, the first Saudi electric vehicle brand, was announced by Crown Prince Mohammed bin Salman at the beginning of November, and will see EVs designed, manufactured, and sold to consumers in Saudi Arabia and the Middle East and North Africa region.
“We have found a place that meets all our needs. KAEC offers us a great location with worldclass logistics, effective access for our global and Saudi-based suppliers, and an ideal location to develop our future workforce,” said Ceer CEO James DeLuca in a press statement.
According to a Ceer press release, the site in Industrial Valley near King Abdullah Port in KAEC will cover over 1 million square meters. The factory will feature the latest technologies to ensure manufacturing efficiency while minimizing energy and water usage, making it a zero-waste-to-landfill site.
Ceer, a joint venture between the Public Investment Fund and Hon Hai Precision Industry Co., also known as Foxconn, will license component technology from BMW to design and build vehicles, including sedans and sport utility vehicles in the Kingdom.
Foxconn will develop the electrical architecture of the vehicles, resulting in a portfolio of products that will lead in infotainment, connectivity and autonomous driving technologies.
The establishment of Ceer comes in line with the PIF strategy to focus on unlocking the capabilities of promising sectors in the Kingdom, including the automotive industry and creating opportunities for the growth and diversification of its economy.