The Jazan Chamber of Commerce and Industry signed a cooperation agreement with China-based Xincheng Jiao Technology to build a vehicle manufacturing plant in Jazan, with investments worth around EUR 10 bn (SAR 43.3) over 15 years, the chamber said on X on Thursday. Specific timelines weren’t disclosed.

What we know: The new facility will cover all stages of vehicle manufacturing — from assembly and component production to research and development of advanced mobility technologies. The agreement covers cooperation in site selection, government coordination, and future research into high-efficiency and clean energy vehicles.

Why Jazan? The city was chosen for the project “for its strategic location, international seaport, and expansive industrial zone,” making it “an ideal environment to attract heavy and high-tech industries, including automotive manufacturing,” Jazan Chamber Secretary-General Majid Al Jawhari told Asharq Al Awsat. The agreement comes after Al Jawhari led a 12-day investment mission to China, which saw 45 agreements and MoUs signed with Chinese companies across energy, education, logistics, technology, tourism, and real estate, with a total investment ticket of USD 11.8 bn.

REFRESHER- The Jazan Chamber was seeking bidders earlier this year for a SAR 302.3 mn cars and trucks batteries production project in the Jazan Economic Special Zone. With an annual production capacity of 1 mn batteries, the project will help meet local demand, reduce imports, and cut logistics costs due to its proximity to Jazan Port.

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