KGM to Assemble Electric Vehicles in Ethiopia, Build East Africa Export Hub

[Financial News] KG Mobility (KGM) is establishing an electric vehicle assembly base in Ethiopia to target the East African market. The company plans to supply approximately 1,000 KGM Torres EVX and KGM Musso EV units annually and export vehicles assembled locally to neighboring countries. Starting with Ethiopia, KGM also plans to expand its knock-down (KD) assembly business in Saudi Arabia and Vietnam to increase overseas sales.
KGM announced on the 23rd that it signed an MOU on the 22nd at KG Tower in Jung District, Seoul, with Ethiopia's B&C Manufacturing Group and global logistics and engineering company Yeongsan Glonet for a KD assembly business in Ethiopia. The signing ceremony was attended by KGM CEO Hwang Ki-young, B&C CEO Bruk, Yeongsan Glonet President Jeong Chan-beom, and Kepeleng Amtatau Urgat, minister plenipotentiary at the Ethiopian Embassy in Seoul.
The three companies will cooperate to build a plant in Ethiopia for the local assembly and production of KGM vehicles and establish a sales network. Construction of the KD assembly plant is scheduled to begin in October, with production set to start in the first half of next year. KGM will supply electric vehicles, including the KGM Torres EVX and KGM Musso EV, at an annual volume of approximately 1,000 units.
Plant construction will proceed through a division of responsibilities covering local infrastructure and equipment and technical support. B&C, which operates construction and aluminum manufacturing businesses in Ethiopia, will secure the plant site and infrastructure and build the production facilities. Yeongsan Glonet will support the work required for construction, including plant design, technical consulting, engineering assistance, and the supply of production equipment.
The sales scope will extend beyond Ethiopia's domestic market. B&C plans to export KGM vehicles produced at the local plant to major East African countries, including Somalia, Kenya, Uganda, Rwanda, and Djibouti. The strategy is to use the Ethiopian production facility as a hub for supplying vehicles to neighboring markets.
Alongside the MOU, KGM plans to expand its KD business in the Middle East and Southeast Asia. The company is focused on increasing global sales by broadening its production and sales base in emerging markets and introducing new models tailored to individual countries.
KGM CEO Hwang Ki-young said, "Following our entry into the Ethiopian KD business, we plan to increase sales volumes by strengthening our efforts to target global markets, including expanding KD operations in Saudi Arabia and Vietnam within the year, entering emerging markets, and launching new models in each country."
[email protected] Kim Dong-ho Reporter