Renault consolidates its investment in Algeria with a new production plant

renault-symbol-algeria-1Renault is possibly the best European manufacturer based in North Africa. France’s ties with the Maghreb have always been very close, and indeed French is the language most used in Morocco, Tunisia and Algeria. In the now distant 1959, Renault set up its first production unit in Algeria, named CARAL (Construction des Automobiles Renault en Algérie).

Although it was nationalized a decade later, Renault’s presence in North Africa had been consolidated. Today Renault Group also produces vehicles in Morocco, especially under low-cost brand Dacia. Lodgy is the case, produced in Morocco for all global markets. Renault has announced the construction of a new production plant in Algeria, which will be owned 51% of Algerian public interests and own 49% of Renault.

renault-symbol-algeria-2The new Renault production plant in Algeria will be located southeast of the city of Oran, which enjoys a privileged position thanks to the Mediterranean port output. The factory – Renault Algérie called Production – produce for now only the New Renault Symbol, a three-volume utility based on the platform of the new Dacia Logan. The first units will begin to manufacture the end of 2014, at a rate of 25,000 units.

If the host of the model is good, production could reach 75,000 units per year. At first, all production would go to the Algerian domestic market, where Renault is one of the clear leaders in sales. The national employment agency estimated that Algeria will create some 350 direct jobs at the plant, which will add to the sales structure has already Renault.

Nor should we forget the drag effect on the economy of the country and the small supplier. Renault has explained in its press release that transfer technology to local company and employ local supply network, but will have to import part of the advanced components, of course.

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