Jaguar Land Rover considers plant in Saudi Arabia

11 December 2012
By Sofia Mitra-Thakur
Mobile version
Share |
Jaguar Land Rover could start manufacturing cars in Saudi Arabia

Jaguar Land Rover could start manufacturing cars in Saudi Arabia

Jaguar Land Rover (JLR) has signed a preliminary deal to build a plant in Saudi Arabia, extending its expansion in fast-growing markets having already started work on a plant in China.

The British luxury marque, owned by India's Tata Motors, signed the deal to look at the possibility of making 50,000 Land Rovers a year at a Saudi plant costing some 4.5 billion riyals ($1.2 billion), the country's commerce and industry ministry said in a statement.

A spokesman for JLR said the agreement was "purely exploratory" and it was too early to provide any details.

JLR has seen huge demand over the past year from emerging markets such as China, Russia and countries in the Middle East for its luxury SUVs and sleek sedans, offsetting sluggish growth in developed markets.

The company and its Chinese partner Chery Automobile said last month they had laid the foundation stone for a factory near Shanghai.

"I can't make any statement for these kind of investment figures. We have just signed a letter of intent - it's a letter of intent to investigate the project," JLR chief executive Ralf Speth told reporters in the Saudi capital.

"A memorandum of understanding is scheduled in the next year and this memorandum of understanding will have more facts and figures."

The proposed plant, which will assemble four-wheel-drive Land Rovers, will likely start up in 2017 and will be located in Yanbu on the kingdom's Red Sea coast, said Azzam Shalabi, head of the Saudi commerce and industry ministry's industrial clusters programme.

Saudi Arabia, which does not have an existing automotive industry, is seeking to develop local industry to diversify its economy away from oil exports, leveraging its abundant natural resources and low electricity prices.

JLR said in its statement it had already identified opportunities for aluminium component production in the country, but it did not specify where the investment for the proposed plant would come from.

The company would not lose British jobs to any new Saudi plant, Speth said.

"If we proceed, it will complement our existing expansion in the UK and elsewhere," Speth was quoted as saying in the JLR statement.

For Tata Motors, JLR is a key unit which delivers 90 per cent of group profit.

The group's shares jumped last month after it reported that July-September margins at JLR had improved to 14.8 per cent from 14.4 per cent a year earlier.

Ratan Tata, outgoing chairman of Tata Group, told a magazine in September that Tata Motors was looking using local aluminium production in Saudi Arabia, where Saudi Arabian Mining Co (Maaden) and Alcoa are building a smelter scheduled to start production next year.

That smelter is on Saudi Arabia's Gulf coast, across the country from Yanbu, but Shalabi said a rail link connecting the two areas would be operational by 2017 to ship rolled aluminium to the Land Rover factory.

Latest Issue

E&T cover image 1604

"Should the UK's engineers be in or out of Europe? The IET sets out its official position on the EU referendum this week - will you agree?"

->

E&T jobs

  • Solutions Engineer

    Bristol Water
    • United Kingdom
    • £41,000 - 49,000

    We serve a population of over one million people and all the associated businesses in an area of 1,000 square miles centered on Bristol.

    • Recruiter: Bristol Water

    Apply for this job

  • Senior Mechanical Engineer

    Bristol Water
    • United Kingdom
    • £41,000 - 49,000

    We serve a population of over one million people and all the associated businesses in an area of 1,000 square miles centered on Bristol.

    • Recruiter: Bristol Water

    Apply for this job

  • Software Renewals Manager

    BAE Systems
    • Preston, Lancashire, England
    • Negotiable

    Software Renewals Manager Would you like to work in a resourceful and developing role within IT Services? We currently have a vacancy for a Software Renewals Manager at our site in Preston Channel Way. As a Software Renewals Manager, you will be responsi

    • Recruiter: BAE Systems

    Apply for this job

  • Technical Manager

    Aggregate Industries
    • Hulland Ward, Ashbourne
    • Attractive salary plus comprehensive benefits

    A key Technical Manager role driving product improvement and compliance with Aggregate Industries, market leader in Construction Solutions.

    • Recruiter: Aggregate Industries

    Apply for this job

  • Field Application Engineer

    Intel
    • Madrid

    Responsible for giving product presentations to the customer describing how Intel products provide the optimum solution to their application.

    • Recruiter: Intel

    Apply for this job

  • Engineers and Scientists

    European Patent Office
    • Munich and The Hague
    • See job description

    We are looking for Engineers and scientists in various technical fields for our locations in Munich and The Hague.

    • Recruiter: European Patent Office

    Apply for this job

  • Director of Product Management

    EMS Recruitment Group
    • West Yorkshire
    • Circa £70,000 PA + car allowance, excellent benefits including lucrative bonus scheme

    Our client is the undoubted world leader in their field. A highly innovative and progressive specialist electro-mechanical product manufacturer....

    • Recruiter: EMS Recruitment Group

    Apply for this job

  • Electrical Engineer

    Premium job

    Scottish Prison Service
    • Edinburgh, City of Edinburgh
    • £40,654 to £48,579 plus annual supplement of £10,000

    Build Your Engineering Career. The Scottish Prison Service (SPS) is an Agency of the Scottish Government, working in partnership.....

    • Recruiter: Scottish Prison Service

    Apply for this job

  • Sales Electronics Engineer

    Premium job

    Precision Microdrives
    • London (Greater)
    • £25,000 - £30,000 starting salary, inclusive of on-target commissions.

    Precision Microdrives (PMD) is a fast growing technology company that designs, produces and trades miniature electro-mechanical mechanisms

    • Recruiter: Precision Microdrives

    Apply for this job

  • Installation and Commissioning Engineer

    Premium job

    Crest Solutions
    • Corby
    • Competitive

    You will be involved in installation, commissioning & servicing of printing and machine vision related solutions.

    • Recruiter: Crest Solutions

    Apply for this job

More jobs ▶

Subscribe

Choose the way you would like to access the latest news and developments in your field.

Subscribe to E&T