Renault To Set Up Plant In Algeria By Mid-September

A joint venture is to be created by mid-September with the French car manufacturer Renault for the setting-up of a car manufacturing plant in Algeria, Minister of Industry, SME and Investment Promotion Mohamed Benmeradi said here on Monday.

“The commission in charge of the partnership will meet Monday to finalise the agreement so that the joint venture will be created by mid-September,” Algeria’s Press Service quoted Benmeradi as saying to journalists on the sidelines of the opening of Lower House’s autumn session.

Algerian capital will be shared out among the National Company of Industrial Vehicles (SNVI) and the Algerian National Fund for Investment (FNI), with 51 per cenr for Algerian partners and 49 percent for Renault,” said Benmeradi.

The effective manufacturing of Renault cars is expected within 14 months that follow the joint venture’s creation and not within the following 18 months as it was initially agreed,” he added.

The framework agreement on the construction of a Renault plant in Algeria was inked on May 22, 2012 after 15 months of continuous negotiations.

In accordance with the agreement, Renault plant will produce 75,000 vehicles per year, to progressively reach 150,000 vehicles, a part of which will be exported.

Renault plant will be built in Oran (432-km west of Algiers), while the first site the Algerian side suggested was Bellara in Jijel ((359-km east of Algiers).

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