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FINANCIAL NEWS
Algeria opens first car plant
11 Nov 2014
(MENAFN) Algeria announced it has opened its first car factory in a joint venture with French Renault in the western city of Oran, thus marking the North African country’s entry into the auto industry, Arab News reported.
This opening of the factory is part of Algeria’s plan to revive its industrial sector after the country became increasingly dependent on using its its oil wealth to import manufactured goods instead of making them locally.
“The Renault factory is the product of a win-win partnership. The re-launch of the national industrial base is a central element of President Abdelaziz Bouteflika’s plan and a top priority for this government,” Algerian Prime Minister said at the inauguration ceremony of the new plant.
The plant is expected to manufacture 25,000 Renault Symbol cars a year for the Algerian market, as well as employ 126 workers, which will then rise to 350, with the goal of producing 75.000 cars by 2019.
Algeria, which has nearly USD3 billion in foreign investment, nearly all of these investments are placed in the country’s oil and gas sector, which produces few jobs to the 37 million living in Algeria, resulting a 10 percent of unemployment rate.
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