Renault cars will soon be built in Algeria
The French car manufacturer Renault announced that its future Algeria factory
should begin producing vehicles in November 2014, if all goes according to plan.
The Deputy Director for Renault, Arnaud Jaeger, was quoted by the Algerian news agency APS as saying that the factory will require an investment of several hundred million euro.
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“We will spread the investment into different stages of the project. The first step will require a 50 million euro investment, while the following steps will be around several hundred million of euro," he told a joint press conference with the Algerian shareholders of the project.
Algeria - via the National Society of Vehicles (SNVI) and the National Investment Fund - will hold a 51% stake in the Algerian subsidiary of the company and the French group will have the remaining 49%. The future Renault factory will initially produce 25,000 vehicles per year; during the next few years it will produce 75,000 units, and should reach 150,000 vehicles a year ten years after the start of production, one source said.
The shareholders' agreement was signed on December 19th in Algiers, during an official visit by French President François Hollande. The plant will be located in the industrial area of Oued Tlelat, near Oran (430 kilometers west of Algiers). The first vehicle will be out 18 to 24 months after the consturction of the industrial complex begins - November 2014.
The investment is a wise one for Renault, since Algeria is the sixth largest market for the car company.