Renault has secured a three-year exclusivity agreement in Algeria starting from the second half of 2014, when it will begin production of the Dacia Logan-based Symbol model.
Initial production of the Renault Symbol in Algeria will be 25,000 units a year, with a possible maximum output of 75,000 units. The deal is an investment split between Societe Nationale de Vehicules Industriels (SNVI), Algeria’s National Investment Fund (FNI) and Renault. SNVI and FNI are contributing 34 percent and 17 percent respectively, to form a 51 percent stake in the venture, with Renault taking the remainder 49 percent.
“The agreement will start in the second semester of 2014. The deal will give exclusivity for Renault in the Algerian market – no other automobile maker can come in and build an assembly plant. The exclusivity period starts at the start of production,” a Renault spokeswoman told Just-Auto. The Renault representative added that the deal will create around 350 jobs in Algeria to start with.
The plant will be located near the port of Oran, at Oued Tielad, a location chosen due to the proximity of the harbour, the road network and a qualified local labour force. The output will be destined mainly for Algeria’s market, which currently stands at around 410,000 cars a year. Exports to other African countries are also under consideration, but only after domestic demand is satisfied.