Renault has commenced building a new plant in Algeria that will produce the New Symbol low-cost model. The French carmaker is investing EUR50 million in the plant, which will have an annual capacity of 25,000 units. The Algeria site is part of the carmaker’s bid to expand its presence in North Africa and will start completely knocked down production (CKD) of New Symbol in November 2014 for the local market.
It will be operated by Renault Algeria Production, a joint venture between Renault and the Algerian government. Renault expects to expand the site’s capacity to 75,000 units annually and to produce other models there.
The plant, which will manned by a 300-strong workforce -- will be Renault's first in Algeria since it exited the market after the country gained independence from France in 1962.
The New Symbol will be based on the Renault MO platform, which underpins the Dacia Logan. Renault had said the New Symbol would be a rebadged Clio subcompact. Renault is hoping to benefit from the strong growth in North Africa -- Morocco, Algeria, Egypt and Tunisia -- where new-car sales are seen to surge to 880,000 units in 2015, according to IHS Automotive.