Jaguar Land Rover is currently conducting a feasibility study into the establishment of a production facility in the Saudi Arabian industrial port of Yanbu.
As Drive.com.au reports, the Saudi government is trying to lure the auto maker with the promise of a free factory.
If the company were to go ahead with the plan, it would be the first company to take advantage of Saudi Arabia’s government incentives.
The government is willing to invest over $1 billion to construct a world-class manufacturing facility and it would lease it to Jaguar Land Rover for production of its sports sedans and top-end SUVs.
Another factor adding to the desirability of the plant is the presence of the Alcoa aluminium smelter in the industrial port. This would be able to provide a future factory with low-cost materials for vehicle structures.
“This smelter could make the production of aluminium in Saudi Arabia very competitive,” Ratan Tata, the founder of JLR’s eponymous parent company, told Saudi news service, The National, recently.
“If we put an assembly plant there with a large press shop, given our commitment to aluminium in our products, we could have an interesting business case," Tata said.