The Japanese group Nissan and its Algerian partner Hasnaoui group announced Wednesday that they have reached an agreement for the construction of a car factory in Algeria for US$ 160 million.
The plant which will be located in the region of Oran (400 km north-west of Algiers) is expected to create 1,800 jobs.
Its 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’s President for African, Middle Eastern and Indian operations, Peyman Kargar, adding that the plant will manufacture 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.
The Algerian automobile industry was born in 2014 from a partnership between the authorities and Renault, which opened its first factory “made in Algeria”, again in the Oran region.
After the French group, South Korean Hyundai and German Volkswagen opened assembly plants respectively in Tiaret and Relizane, more than 300 km southwest of Algiers.
The French car manufacturer PSA also intends to produce vehicles in Algeria as part of a joint venture created in November 2017 with three Algerian companies for an investment of around 100 million euros.
The automotive sector has become a priority for Algeria, anxious to diversify its economy in the face of falling oil prices, source of 95% of its currencies.
The authorities forced the concessionaires to build a local production unit to reduce the import bill.