It is reported that Korea Posco and Saudi Arabia public investment Fund (PIF) signed a MOU to joint build new auto assembly plant in Saudi Arabia.

The new plant designed of annual capacity of 150,000 vehicles and it is expected to begin the operation as early as 2017 but both sides have failed to sign a final contract so far.

PIF is expected to invest approximately US$1 billion and the Posco of subsidiaries and Korea's largest trading company Daewoo International will be responsible for the overall project design, auto parts purchasing and vehicle Assembly.

The new project is a good opportunity to increase market share for POSCO.