Renault and Algeria plan to sign an agreement in August to build a new car plant in the north African 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 finalising 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 government proposed two sites t choose from, Oran and Mostaganem.