Algeria and Renault Will Sign Deal to Build New Car Plant, Minister says
French car manufacturer Renault and Algeria plan to sign an agreement in August to build a new car plant in the country. Renault recently declared that it also plans to launch two new models, a descendant of the Alpine sportscar and one in the premium segment.
- It took two years of negotiations to build cars for the Algerian market at the new facility in the west of Algeria.
- “Our teams have been working on finalizing the shareholders’ alliance since May 25, and it will probably be ready by early August,” Industry Minister Mohamed Benmeradi said on national radio.
- He also said that the joint venture between Renault and Algeria will be final within two or three months, but production of the factory could begin sooner.
- On May 25th, Algeria and Renault signed a framework agreement, but the final details still haven’t been settled. No information was given about the financial details, it is only known that negotiations are ongoing.
- Misunderstandings have risen concerning the location of the plant. Renault said it would prefer a site in the suburbs of Algiers, which would mean fewer struggles to find qualified workers near the capital.
- On the other hand, Algerian officials were initially aiming towards the Mediterranean port of Jijel, located 350 kilometers east of Algiers, in order to boost regional development.
- In the end, the Algerian government proposed two sites to choose from Oran and Mostaganem in western Algeria.