Algeria to set up four new car manufacturing plants

The Algerian government has given the go-ahead to build four new plants to manufacture European and Asian cars. They are expected to reach the industrialization phase before 2008 with a production capacity of around 500,000 per year. Algeria would become the first car exporting country in Africa as it was the first importer. Morocco would lose its position as the car manufacturing leader in Africa.

French car manufacturer PSA will be the first plant due to be established in Algeria in 2017. It includes three brands: Peugeot, Citroen and DS.

Korean giant Hyundai plans to build the first Korean car manufacturing plant in Algeria, according to South Korea’s Ambassador to Algiers. An agreement will be signed with the industry ministry in December.

Algeria has four big car manufacturing plants including Renault, Mercedes and Sonacom plants.

This is part of Algeria’s endeavors to locally manufacture cars and reduce imports bill. Algeria would be the first Arab and African car manufacturer by 2018.