Renault, the renowned French automajor, has become the first automaker to set a production facility in South African nation, Algeria as it inaugurated its Renault Algérie manufacturing unit on November 10, 2014. The attendees were Abdelmalek Sellal, the Algerian Prime Minister, Abdesselam Bouchouareb, Algerian Minister of Industry and Mining, Laurent Fabius, French Minister of Foreign Affairs and International Development, Emmanuel Macron, French Minister of the Economy, Industry and Digital Affairs, and Carlos Ghosn, Chairman and Chief Executive Officer of the Renault group.
The Renault Algérie Production plant is owned 49% by the Renault group, 34% by SNVI (Société Nationale des Véhicules Industriels - Algeria) and 17% by the Algerian National Investment Fund (FNI). The plant is located at Oued Tlelat 27 km southwest of Oran. The site has a surface area of 151 hectares, of which 20 hectares is reserved for subcontracting. The Renault Algérie Production plant on start-up is an assembly site, identical to other assembly shops at Renault plants. In the future, it may be equipped with stamping, body and paint shops. A sum of €50 million was invested in the plant.
Carlos Ghosn, Chairman and Chief Executive Officer of the Renault group commented, "Renault is proud to be the first carmaker to set up industrial operations in Algeria and thereby contribute to the development of a national automotive industry.” The plant produces New Renault Symbol with an annual production capacity of 25,000, which may, in the long-term, be increased to 75,000. The New Renault Symbol, set to roll off the production lines in a few days, will be the first vehicle in the country to feature a GPS navigation system.
The Renault Algérie Production plant is a strategic and efficient Algerian plant. It is the result of a robust cooperative initiative between Renault and Algeria that gives birth to an automotive industry in Algeria, the second-largest automotive market on the African continent. Some 425,000 vehicles were sold in the country in 2013, making it Africa’s second-largest automotive market behind South Africa. After a period of strong growth, the market has contracted in 2014, with just over 265,000 vehicle sales through end-September. Algeria also has Africa’s second-largest vehicle population at over three million. In all, close to 350 employees have been hired for the start-up of the plant. Nearly 40% of the employees are women. The average age is 32. The professional profiles are highly varied, serving as a source of mutual enrichment. 500 jobs have been created at suppliers to the plant.