Japan's Nissan group and Algerian group Hasnaoui announced on Wednesday they have reached an agreement to build a car factory in Algeria for $ 160 million. The plant will be located in the Oran area (400 km northwest of Algeria) to create 1800 jobs, according to a joint statement by Nippon and Hasnaoui group, an official Nissan distributor for more than 25 years in Algeria.
Entry into production is scheduled for the first half of 2020 with an initial capacity of 63,500 vehicles.
"Nissan will offer its new range of the best models with innovative technology," said Nissan Cargre, president of Africa, the Middle East and India, adding that the plant will produce four models. The new plant will increase Nissan's potential capacity in Africa to 200,000 vehicles, including factories in South Africa, Egypt and Nigeria, the statement said.
Algerian automotive industry was born in 2014 by the partnership between the authorities and Renault, which opened its first factory, "produced in Algeria", again in the Orange region.
After the French group, the South Korean Hyundai and the German Volkswagen opened a pre-assembled installation in Tiaret and Relizane, more than 300 km southwest of Algeria. The French automaker PSA also intends to produce vehicles in Algeria as part of a joint venture set up in November 2017 with three Algerian companies for an investment of about 100 million euros.
The automotive sector has become a priority for Algeria, wishing to diversify its economy in conditions of falling oil prices, a source of 95% of its currency. Authorities forced concessionaires to build a local production unit to reduce the import bill.
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