Tata Daewoo, the South Korean commercial vehicle giant, has unveiled plans to establish a truck manufacturing facility in Saudi Arabia. This strategic expansion is set to bolster their presence in the Middle Eastern market.
An agreement through a Memorandum of Understanding (MoU) was inked between Tata Daewoo, Saudi Diesel Equipment Company (SDEC)—their local distributor, and Perfect Arabia Factory (PAF), a local manufacturer. This partnership is designed to enhance the production capabilities within the kingdom.
Under this collaboration, Tata Daewoo is committed to providing technological support for the venture. Meanwhile, SDEC and PAF will collaborate in assembling Daewoo trucks in Saudi Arabia, leveraging their local expertise and resources.
The move comes on the heels of a successful year for the Korean manufacturer, which saw them export 670 large trucks to Saudi Arabia, culminating in sales amounting to approximately 48 billion won ($35.6 million).