ALGERIA – Nissan
Motor and Groupe Hasnaoui have unveiled plans of investing a total of US$160
million to set up a anew Nissan vehicle plant in Algeria in a bid to meet
growing customer demand in the country and across Africa
The joint venture will establish a plant with a capacity to build 63,500 passenger cars and light commercial vehicles annually, and will produce several models.
The ambitious motor company aims to double its presence in the Africa, Middle East and India region over the course of the company’s Nissan M.O.V.E. to 2022 midterm plan.
This is part of the company’s growth strategy of expanding its industrial operations into new markets after it announced last year that it will start making cars in Pakistan.
Algeria is forecast to be the second-largest car market in Africa by 2021 with the government working to diversify the economy and has set a target to ultimately raise production to 500,000 cars a year, while growing the local supplier base.
The Nissan car plant is expected to create at least 1,800 jobs in Algeria and support many more in the supply chain.
Nissan teams from Japan will work with suppliers in the country to develop the local component industry through technical support, training and skills exchange.
Peyman Kargar, senior vice president and chairman of the Africa, Middle East and India region for Nissan, said that the company will bring new models and innovative technology to meet the growing expectations of customers in Algeria.
“Working with Groupe Hasnaoui, we already have a strong heritage of excellent products and service in the country. Using our Japanese engineering expertise, we will build a manufacturing hub and work to develop the supplier industry,” he added.
Groupe Hasnaoui, founded in 1964 by Abdallah Hasnaoui, is a major player in the Algerian economy with interests in industry, distribution and services.
The company is Nissan’s distributor in Algeria, committed to creating value in the Algerian economy and is headed by its two co-presidents, Feriel Hasnaoui and Sefiane Hasnaoui.
Nissan Algeria – a subsidiary of Groupe Hasnaoui – will also expand its existing national network of 35 outlets in line with an anticipated increase in sales volume that will place Nissan within the top tier of auto brands in Algeria by 2021.