Chinese auto company Foton has joined hands with local partners to explore the establishment of an integrated commercial vehicle manufacturing plant in Saudi Arabia, Saudi Gazette has reported.

As part of the Kingdom’s Vision 2030 ongoing efforts to strengthen its industrial sector and localize high-value manufacturing, Petromin Corporation, Foton, the Ministry of Investment, and the National Industrial Development Center signed a four-party memorandum of understanding (MoU) last month in Saudi capital Riyadh.

The initiative aims to develop local capabilities in manufacturing and logistics, strengthen supply chains, and increase localization rates in the vehicle sector. The scope of production will include heavy-duty trucks, light-duty trucks, and buses.

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Chairman and CEO of Al-Dabbagh Group, Amr Al-Dabbagh, said: "This step aligns with our ambitions to promote a diversified economy based on industry and technology. We take pride in this partnership with Foton, who are number 1 in the Chinese commercial vehicle market. This partnership acts as a strong catalyst to deliver high-quality commercial vehicles that meet market expectations and support achieving Vision 2030 objectives."

Chairman of BAIC Foton, Chang Rui, added: "We are proud of our partnership with Petromin to localize commercial vehicle manufacturing. Through this collaboration, we aim to transfer advanced technology to the Saudi market and provide innovative and sustainable mobility solutions benefiting businesses and consumers alike."

The project is backed by the Saudi Ministry of Industry and Mineral Resources, the Ministry of Investment, the National Industrial Development Center, the Saudi Industrial Development Fund, and the Local Content and Government Procurement Authority. It is expected to create job opportunities for national talent, support the growth of small and medium-sized enterprises, and contribute to the Kingdom’s shift toward a sustainable, advanced industrial economy.

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With its rich history and expertise in the automotive industry, Petromin is a leading provider of comprehensive automotive solutions in the Middle East. The company is committed to fostering innovation within the community and ensuring customer satisfaction through high-quality products and services.

Foton, part of top commercial vehicle manufacturer BAIC Group in China, has established a global presence in the industry. It focuses on producing high-quality commercial vehicles through strategic partnerships with leading industry manufacturers such as Daimler (Mercedes-Benz), ZF Transmission, Cummins Engines, and others. Its partnership with Petromin provides a unique opportunity to enhance its presence in the Saudi market, leveraging Petromin's local expertise and market presence.

Foton sources said they also delivered a large group of special school vehicles to Saudi Arabia clients last month.