Foundry Daily News

Algeria - Renault Plant in Algeria, First Step Towards Civil Car Industry

Algiers — Inauguration, next Monday, of Renault plant in Oued Tlélat (Oran), which will manufacture first "Algerian Symbol", represents the beginnings of a civil car industry and one of the major missing links of national mechanical industry.

Prime Minister, Abdelmalek Sellal and French Foreign Minister, Laurent Fabius, in the presence of CEO of Renault, Carlos Ghosn, will launch Renault plant in Algerian, long-awaited by the Algerians wishing to finally buy a "made in Algeria."

Located on an area of 151 hectares in Oued Tlélat, the plant cost, to date, nearly € 50 million and expects an increase in investment to € 800 million in the medium term.

While the goal is to achieve a national integration rate of 42% by 2019, the manufacturing of the first car of Renault Algeria with some plastic parts produced locally, allowed an integration rate of 17%, expected to increase to 25% in 2015.

This means the contribution of Algerian SMEs to the development of this project to increase the national integration rate is still low. Therefore, the development of outsourcing is a major concern for this investment.

Significant investment will be made in stamping vectors, sheet metal and paint, to raise the vehicle's integration level.

In two or three years, investment in stamping will allow to completely manufacture the bare shell of the vehicle.

As for the benefits granted by the State for this project, CEO of Industrial and agricultural equipment company, Dehimi Bashir, told APS Renault Algeria project benefited from various advantages under the investment code.

Besides, he stressed that "the joint venture Renault Algeria Production (RAP) received these benefits and not the French manufacturer."



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