JLR to Invest £100 mn in Saudi Facility - The New Indian Express

JLR to Invest £100 mn in Saudi Facility

Published: 03rd March 2014 01:30 AM

Last Updated: 03rd March 2014 01:30 AM

Indian automobile maker, Tata Motors-owned Jaguar Land Rover (JLR) will invest £100 million for opening a factory in Saudi Arabia. This will be the company’s third foreign expansion after it signed deals to open factories in China and Brazil.

According to public broadcaster BBC, the deal was on the cards since 2012 December as the construction of the world’s largest aluminium smelting facility in Saudi Arabia had caught the interest of Jaguar’s parent company Tata Motors. The facility will be able to offer the world’s lowest priced aluminium which would naturally attract Jaguar which uses the metal in building its cars.

JLR recorded a 27 per cent year on year increase to 1,12,172 vehicles in the third quarter of the current fiscal. Revenues of the company touched £5,328 million for the third quarter and profits (before tax) stood at £842 million for the quarter.  Agencies reported that the new factory will produce 100,000 cars per annum to cater to the high demand in West Asia.

Reports added that the new set up will employ close to 5000 people.

The Saudi government, keen on developing the automotive industry, is also reportedly investing in the plant.

Production is likely to begin with components sourced from Britain while progress is made on deals to source more parts from Saudi companies.

JLR has been actively pursuing efforts to increase their global footprint and has signed deals to open factories in China and Brazil.

The company invested £500 million for their engine plant in West Midlands, which will begin production next year. Another £240 million agreement was signed in 2013 for building a plant in Rio de Janeiro and a joint venture with a Chinese car maker to open a plant in China with a total of £1 billion investment was also announced.

The Chinese plant in Shangai is due to open in 2015. JLR sold a total of 4,25,006 units in 2013, recording an increase of 19 per cent over the previous year.

However, back home, the parent company Tata Motors reported a 35 per cent drop in sales in February this year.

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