South Korea-based automaker Hyundai Motor Company has announced that it has signed a memorandum of understanding with the Indonesian government to build its first manufacturing plant in the country.
The high technology manufacturing plant will be located in the city of Deltamas, and its construction will start in December this year, while it is scheduled to start production in the second half of 2021 with an annual capacity of 150,000 units. The plant is expected to produce about 250,000 vehicles annually once it reaches full capacity. Until 2030, approximately $1.55 billion of investments will be made in the plant. Furthermore, South Korean steelmaker Hyundai Steel will be meeting the steel needs of the plant in question.
The investment mentioned will support growth in ASEAN markets and help the fight against slowing demand in the global automotive market. Meanwhile, the new plant is expected to create more than 23,000 new direct and indirect jobs in Indonesia, in addition to making a contribution worth more than $20 billion to the Indonesian economy in its first decade.
Indonesia is among the largest automotive markets in the ASEAN region with a sales volume of 1.15 million units last year.