Algeria is set to witness yet another vehicle plant with the $160 million investment by Japanese multinational automobile manufacturer, Nissan and Algerian partner Groupe Hasnaoui. The investment is for a new Nissan vehicle plant in Algeria to meet growing customer demand in the country and across Africa.
According to Nissan’s senior vice president and chairman for Africa, Middle East and India region, Peyman Kargar, “Nissan will bring new models and innovative technology to meet the growing expectations of customers in Algeria. Working with Groupe Hasnaoui, we already have a strong heritage of excellent products and service in the country. Using our Japanese engineering expertise, we will build a manufacturing hub and work to develop the supplier industry.”
In the coming weeks, the two companies will set up a joint venture, having received the approval of the Algerian government on December 6, 2018. The plant which would be near the western city of Oran is due to start production in the first half of 2020 and is expected to create 1,800 new jobs.
The building capacity of the plant is set at 63,500 passenger cars and light commercial vehicles annually, for which several models of Nissan cars would be produced.
Algeria’s automotive industry is among the largest on the African continent and is forecast to become the second-largest car market in Africa by 2021.
Presently, Renault is the largest manufacturer in Algeria with an estimated 25.5 percent of the national car market. Other carmakers like Volkswagen, Peugeot, Hyundai, Nissan and Fiat are also present in the North African country.
With the new plant, Nissan’s total potential capacity in Africa increases to about 200,000 vehicles (including existing factories in South Africa, Egypt and Nigeria).