Nissan Motor Co. is investing US $ 160 million in a manufacturing plant in Algeria along with partner Groupe Hasnaoui. The plant will have a capacity of 63,500 passenger and light vehicles. The line-up will be announced later.
The framework of the partnership will be set up over the coming weeks, meanwhile the project has received go-ahead from the Algerian government.
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.
“Nissan will bring new models and innovative technology to meet the growing expectations of customers in Algeria,” said Peyman Kargar, senior vice president and chairman of the Africa, Middle East and India region for Nissan. “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.”
Nissan aims to double its volumes in the Africa, Middle East and India region under their mid-term plan. In that, Algeria is seen as a key market, forecast to be the continent’s second largest by 2021, with the government putting in policies that should raise production to 500,000 units a year.
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 committed to creating value in the Algerian economy and is headed by its two co-presidents, Feriel Hasnaoui and Sefiane Hasnaoui.
Groupe Hasnaoui is Nissan’s distributor in Algeria. The two companies have been partners for 25 years.
“With an industrial strategy based on employment and localization – the only guarantees of our country’s economic development – and a real creation of sustainable value for our national economy this investment will give us the status of wealth creation and generate industrial expertise,” said Sefiane Hasnaoui, President of Groupe Hasnaoui.
The new plant in Algeria will increase Nissan’s total potential capacity in Africa to about 200,000 vehicles. The number includes existing factories in South Africa, Egypt and Nigeria.