Renault in talks to build a plant in Algeria

Article by Christian Andrei, on November 27, 2010

Local reports in Algeria say that Renault SA is in negotiations to construct a plant in Algeria and to revive a plan to take advantage of growing demand. Algerian Industry and Investment Promotion Minister Mohamed Benmeradi said that Renault aims to build 75,000 cars a year starting in 2012 for the country.

El Watan newspaper quoted Benmeradi to have sad that these talks are now focused on the creation, the first stage of an assembly plant. This will then be followed in a second stage by vehicle manufacturing.

Benmeradi said that Renault has offered to be the supplier of its (locally assembled) vehicles to the Algerian market by 2012.

Benmeradi made these comments last Wednesday before a meeting with former French Prime Minister Jean-Pierre Raffarin, who made a visit in his capacity as President Nicolas Sarkozy's special envoy.

Renault and the Algerian government have been in talks with regards to a factory for several years. Last February, Renault Chief Operating Office Patrick Pelata said that talks were "well advanced."

But the talks have stalled since that time. According to Algerian government sources, the officials weren’t pleased about how much Renault planned to invest and they also felt that local partners were not involved enough. The officials had also wanted the factory to export vehicles if it had surplus capacity. [via autonews - sub. required]

Topics: renault, factory

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