Nissan signs agreement with Hasnaoui Group to build car assembly plant in Algeria.
Japanese second largest automaker Nissan Motor Corporation, will soon build a car assembly plant in Algeria. This announcement came after Nissan signed an agreement with Algerian private partner Hasnaoui Group; to build a US$160 million car assembly plant in Algeria. Hasnaoui Group will hold a majority stake in the project.
The location of the car assembly plant will be near the western city of Oran. The plant will start production in the first half of 2020 and its estimated capacity per year is pegged at 63,500 vehicles.
Before now, Algeria have already banned the importation of cars. This ban the government believes will help cut spending as the lowered oil and gas earnings have reduced the nation’s revenue.
According to Sofiane Hasnaoui, Hasnaoui Group’s owner, this project will help diversify the Algerian economy. The project is also expected to provide about 1,800 jobs.
Hasnaoui also highlighted that the deal includes training the plant’s employees by Nissan staff. This training will help build the Algeria’s local manpower.
Algeria as an OPEC member have also been trying to attract foreign investment and develop its non-energy sector. As the country’s non-energy sector provides only just 6 percent of total export revenues.
Also speaking after the agreement, Nissan’s senior vice president and chairman of operations in Africa, Middle East and India, Peyman Kargar acknowledged Algeria as a big country for them. He also thanked the Algerian government for their support.
The Nissan car assembly plant in Algeria will first meet the local demand before considering exportation.