Minister of Industry: “Renault agreed to create a cars factory in Algeria”

French cars producer Renault plans to set up a factory in Algeria at a cost of nearly one billion Euros that would allow the creation of 800 direct and 20.000 indirect jobs, Minister of Industry Ben Meradi said.

“Algeria asked Renault to manufacture car engines in Algeria but it asserted that it cannot do this because the establishment of a factory for manufacturing car engines will not be profitable, but if the production is equal to or more than 300.000 engines, while Algeria needs only 150.000 engines, which prompted Algeria to waive this condition, moreover, Renault asserted, during the negotiations, that Nissan is the company which manufactured Renault engines and if Algeria wants to manufacture automobile engines it has to launch another series of negotiations with Nissan”, Ben Meradi told the press on the sidelines of a session of the National Council.

“Negotiations with Renault reached a very advanced stage, as four rounds have been held, including two in France and two in Algiers, but negotiations are still ongoing because they include several branches, until now we only agree on technical matters. The fifth round of negotiation will be resumed at the end of May. Renault suggested the installation of cars in Algeria but we imposed the creation of a factory to produce cars not to install them only. We asserted that the factory should not only manufacture the chassis but 50% of the car parts should be manufactures in Algeria as well. Renault agreed on these conditions after tough negotiations”, he asserted.

“Algeria has neither made concessions to Renault nor succumbed to its terms. Renault bowed before Algeria’s terms and accepted them after tough negotiations”.