Renault Korea Motors on Monday announced a plan to invest 118 billion won ($88.5 million) in upgrading equipment at its Busan manufacturing plant over the next three years, signifying the French automaker’s efforts to produce hybrid and electric vehicles.

Renault Korea Motors CEO Stephane Deblaise and Busan Mayor Park Heong-joon signed a memorandum of understanding at the Busan city hall earlier in the day.

Renault said it plans to hire 200 new personnel at the Busan plant with the fresh investment while the city of Busan pledged to provide administrative and financial support so that the automaker can carry out the investment process smoothly.

“Renault Korea plans to invest 700 billion won in the Aurora 1 and 2 projects, which are being prepared as cutting-edge hybrid models,” said Deblaise.

“If the development and production of the next-generation electric vehicle model are confirmed after the Aurora 1 and 2 projects, we expect to invest over 1.5 trillion won in total through 2027.”

According to Renault Korea, the grand plan is expected to create a direct economic effect of 12 trillion won, an indirect economic effect of 30 trillion won as well as an indirect employment impact of 90,000 jobs.

Dubbed the Aurora 1 project, the midsized hybrid sports utility vehicle is the first of Renault Korea Motors’ future car projects that is set to be released in the local market in the second half of this year.

The French automaker’s Korean office has been tapped as one of the five global hubs under the Renault headquarters’ brand international game plan, taking charge of developing and producing the automaker’s high-end mid- to large-sized vehicles.

The Busan plant is slated to begin producing the Polestar 4, an all-electric SUV by Swedish carmaker Polestar, in the second half of 2025.