CTR Signs Business Agreement with the Saudi Government
First step towards expanding its business in Saudi Arabia
The auto parts company CTR has taken its first step towards expanding its business in Saudi Arabia. Last September, CTR signed a contract to supply parts to the first electric vehicle company established by the Saudi government. Subsequently, it signed an MOU with the Ministry of Investment Saudi Arabia (MISA) to establish a joint venture with a local auto parts company, further solidifying its entry into the Saudi market.
CTR was proposed by the Saudi government to set up a local factory
CTR, Global Tier1 for Automotive Part, received a proposal from the Saudi government to set up a local factory as the primary supplier for original equipment manufacturers (OEM) automotive brands.
On October 14, while visiting South Korea, Khalid Al-Falih, Saudi Minister of Investment, met with CTR to discuss the specifics of establishing a joint venture in the local market.
During this meeting, CTR expressed its commitment to contributing to Saudi Arabia's economic growth by establishing infrastructure for the production of eco-friendly auto parts in line with Saudi Arabia's economic diversification plan, "Vision 2030." In return, MISA promised full support for CTR's local Saudi business.
They also tentatively agreed to set up a factory in Saudi Arabia through a joint venture with the Saudi Public Investment Fund (PIF). During his visit to South Korea, Ahmed Almaki, Head of the Automotive Business Division at MISA, personally visited CTR's local production facilities, indicating significant interest from the Saudi government in CTR's Saudi expansion plans.
Signing of a business agreement (MOU)
CTR's collaboration with the Saudi government was formalized on October 22 with the signing of a business agreement (MOU).
CTR participated in the "Korea-Saudi Investment Forum" jointly hosted by the Saudi Investment Authority and the Korea Chamber of Commerce and Industry. CTR signed a business agreement to establish a local production facility in Saudi Arabia.
Successfully establish a local joint venture
Kang Sang-woo, Vice Chairman of CTR Group, expressed his satisfaction with the recent business agreement, stating, "CTR's entry into Saudi Arabia is evidence of a Korean electric car parts company making its mark in the global market. Through close collaboration with the Saudi government, we will successfully establish a local joint venture and utilize it as a cornerstone for market expansion and entry into Europe."