Saudi Arabia set to manufacture Land Rover vehicles

Saudi Arabia will sign a letter of intent with Tata Group to manufacture 50,000 Land Rover vehicles a year in the kingdom.

A Land Rover Freelander II SUV vehicle is seen at the Jaguar - Land Rover manufacturing plant at Pimpri, in the western Indian state of Maharashtra, on May 27, 2011. India's top vehicle maker Mumbai based Tata Motors opened its first Indian factory on May 27 for Land Rovers, the formerly loss-making British brand aiming to make inroads in the booming South Asian market. AFP PHOTO/ Indranil MUKHERJEE
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Saudi Arabia will sign a letter of intent with Tata Group to manufacture 50,000 Land Rover vehicles a year in the kingdom, using locally produced aluminium and steel, the commerce and industry ministry said today.

The 4.5 billion Saudi riyals investment may later be extended to other Jaguar Land Rover brands, said a press release distributed at the signing ceremony in Riyadh.

The factory will start up in 2017 in either the Jubail or Yanbu industrial cities. Saudi Arabia is seeking to develop local industry to diversify its economy away from oil exports.

India's Tata group owns Jaguar Land Rover, Tata Steel and Tetley Tea in Britain. Jaguar Land Rover is owned by Tata Motors, a unit of Tata Group.

* Reuters