Tata-owned Jaguar Land Rover considers manufacturing in Saudi Arabia

London Dec 12 (ANI)

Tata-owned Jaguar and Land Rover vehicles could soon be built in oil-rich Saudi Arabia as Middle Eastern demand for the luxury vehicles increases, according to a report.

The 1 billion pounds plan follows Jaguar Land Rover sales in the Middle East and North Africa increasing by more than 9per cent to 11,418 vehicles this year.

The move forms part of the car company's global expansion strategy that recently saw it complete a 1 billion pounds deal to build its vehicles in China.

According to the Daily Mail, the India-based Tata Motors also plans to create an additional 4,500 production and manufacturing jobs in the UK over the next five years.

"We are committed to further international partnerships to meet record demand for our highly sought after vehicles," the paper quoted Jaguar Land Rover chief executive Dr Speth, as saying.

"The Kingdom of Saudi Arabia is an attractive potential development option, complementing our existing advanced facilities in Britain and recent manufacturing plans to expand in other countries including India and China," he added.

The paper said that the new deal would present an opportunity for British workers to head out to Saudi Arabia to train local staff, although the company stresses it is not 'exporting British jobs abroad'.

--ANI

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Jaguar looks for Saudi Arabia partnership

Riyadh, Dec 11 (IBNS)

Automobile giant Jaguar Land Rover on Tuesday signed a Letter of Intent with the Saudi Arabian government for an automotive partnership in the country.

Azzam Yaser Shalabi, President of the National Industrial Clusters Development Program (NICDP) Saudi Arabia, and Dr Ralf Speth, Jaguar Land Rover Chief Executive Officer, formally signed the Letter of Intent paving the way for an automotive partnership in the Kingdom of Saudi Arabia.

Jaguar Land Rover, the UK?s leading manufacturer of premium vehicles, and Saudi Arabia?s National Industrial Clusters Development Program (NICDP) will now begin a detailed feasibility study together, to determine the viability of setting up an automotive facility.

"HRH Prince Faisal Bin Turki bin Abdul Azi Al Saud and the Saudi Arabian Government has expressed its intention to initiate, develop and support the automotive industries and see Jaguar Land Rover as a potential partner to help strengthen their industrialisation plans," said an official release.

Speth said: ?The Kingdom of Saudi Arabia is an attractive potential development option, complementing our existing advanced facilities in Britain and recent manufacturing plans to expand in other countries including India and China.?

Discussions between Jaguar Land Rover and the Saudi Government are at a preliminary stage, although opportunities have already been identified in aluminium component production ? an area where Jaguar Land Rover has established a leadership position, said the company.

The world?s largest integrated aluminium complex, a joint venture between Saudi Arabian Mining Company and Alcoa of the US, is due to begin production in 2014 at the Ras Al Khair facility ? creating potential opportunities for the automotive sector.

Exploratory discussions about potential investment in Saudi Arabia follows Jaguar Land Rover?s recent joint venture announcement with Chery Automobile Company Ltd to manufacture vehicles at a new plant near Shanghai, China, and the separate expansion of the Jaguar Land Rover assembly at the company?s plant in Pune.

Such expansion follows a sharp rise in Jaguar Land Rover sales to emerging markets, contributing to a 32pc increase in global retail sales to 324,184 vehicles in the eleven months to November 30, 2012.

In the current calendar year, sales in the Middle East and North Africa have increased by more than 9pc to 11,418 units.

Pending agreement on development options in the Kingdom of Saudi Arabia, Jaguar Land Rover would expect to announce further plans in 2013. Issues such as level of investment, potential capacity and job creation have not yet been discussed in detail between the parties.

?This is an exciting project that could enable Jaguar Land Rover to establish a Joint Venture partnership in a part of the world where luxury vehicle sales are expected to rise,? said Speth. ?If we proceed, it will complement our existing expansion in the UK and elsewhere.?

--IBNS

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