Renault Might Sign Agreement to Build Plant in Algeria image

Renault may sign at the beginning of May an agreement to build plant in Algeria.

“In Algeria, the signature on an agreement could come in early May, ” said an anonymous source.

The talks between Renault and the Algerian government have been going for some months now and CEO Carlos Ghosn has confirmed on February 9th the ongoing discussions on the sidelines of a ceremony to inaugurate a plant in neighboring Morocco. The plant is expected to create 8,000 direct jobs and 20,000 indirect ones.

“Renault officials have themselves selected four or five Algerian subcontractors with whom they have already worked to participate in the construction of a car manufacturing plant in Algeria, with regard to which negotiations are ongoing,” said Algerian Minister of Industry Mohamed Benmeradi.

The Renault spokeswoman refused to comment beyond confirming that talks on the plant were still underway. The French online newspaper La Tribune wrote that that the talks are drawn back by government demands upon the location of the proposed plant and the marketing of vehicles.