West African conglomerate Stallion Group and the Renault-Nissan Alliance have come up with a plan to begin car assembly in Nigeria and even further on set the base for a big Nissan manufacturing hub for the region.
According to a statement issued by the automaker, the memorandum of understanding sees Nissan’s exclusive distributor in the country, Stallion, move to build up its production capacity at its existing facility in Lagos.
“Nissan is preparing to make Nigeria a significant manufacturing hub in Africa,” said Carlos Ghosn, chief executive of Nissan and Renault. “As the first-mover in Nigeria, we are positioned for the long-term growth of this market and across the broader continent.”
The plan has been devised on the news that the country’s government is expected to introduce a new policy designed to support the development of the automobile industry in Nigeria, according to the Japanese carmaker.
The first product to be built was expected to be the Nissan Patrol SUV, set for the spring of next year. The manufacturing facility would also be at the disposal of Nissan’s alliance partner, French auto group Renault, though the companies did not comment on specific details.
Stallion today makes commercial vehicles at the facility, but the plant’s annual capacity would grow to reach 45,000 units, being able to also assemble a range of cars, light duty trucks, pickups and vans, the alliance said.