PSA widens in North Africa with plant in Algeria

PSA Group has signed a joint endeavor with three Algerian partners to manufacture cars in the North African country. A new plant will start production next year and be fully operational in 2019, PSA said in an announcement on Sunday.

PSA did not mention which cars the factory will manufacture, however they stated that the plant will build models that will "enable PSA brands to serve demand from Algerian customers."

 
The agreement will aid PSA to achieve its goal of selling 700,000 vehicles in the Middle East and Africa region by 2021, Jean-Christophe Quemard, PSA's regional boss said in the announcement. PSA said it sold 383,504 vehicles in the region in 2016.
PSA said it would hold 49 percent of the joint venture's capital, representing a total investment of approximately 100 million euros ($117 million). The Algerian partners include Condor Electronics, Palpa Pro and Entreprise Nationale de Production de Machines-Outils (PMO).
 
The joint venture will open the plant in the western Algerian city of Oran, where Renault opened a factory in 2014. Volkswagen Group opened a plant in Algeria in July.
Automakers are expanding production in North Africa in the hope that car sales will grow rapidly as incomes rise. Low costs and the proximity of the EU for potential exports are also attractions.

Posted on : 23 Nov,2024 | News Source : ABNews

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