KGM enters Ethiopia with KD assembly venture, eyes broader Africa push

KG Mobility (KGM) has signed a memorandum of understanding with Ethiopia's B&C Manufacturing Group and global logistics and engineering firm Youngsan Glomet to enter the Ethiopian knockdown assembly market, accelerating its expansion across Africa.

KGM said Wednesday that the MOU signing ceremony was held Tuesday at KG Tower in Jung-gu, Seoul, with KGM CEO Hwang Ki-young, B&C Manufacturing Group CEO Bruk, Youngsan Glomet President Jung Chan-beom and Ethiopian Embassy Minister Plenipotentiary Kefelegn Amtataw Urgat in attendance.

Under the agreement, the three parties plan to build a knockdown assembly factory in Ethiopia to produce KGM vehicles locally and establish a framework for local sales.

B&C, a prominent Ethiopian conglomerate with operations spanning construction and aluminum manufacturing, will secure the factory site and infrastructure and oversee construction of the local production facility.

Youngsan Glomet will provide comprehensive support for the factory build, covering plant design, technical consulting and engineering assistance, as well as the supply of production equipment.

Construction of the KD assembly factory is set to begin in October, with production scheduled to start in the first half of 2027. KGM plans to supply around 1,000 eco-friendly vehicles annually, including the Torres EVX and Musso EV.

B&C intends to export vehicles produced at the factory not only to the domestic Ethiopian market but also to key East African countries including Somalia, Kenya, Uganda, Rwanda and Djibouti, positioning Ethiopia as a central hub for the region.

"Following this entry into the Ethiopian KD market, we plan to expand KD operations in Saudi Arabia and Vietnam before the end of the year," KGM CEO Hwang said. "We will strengthen our push into emerging markets and roll out new models by country to grow our global sales volume."

Meanwhile, KGM is running a special "chuseok" vehicle inspection service at 58 service centers nationwide through Wednesday ahead of the Chuseok holiday, as part of a range of marketing activities aimed at enhancing customer service and convenience.