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Renault to build factory in Algeria

2010-02-10 09:27

Paris - French carmaker Renault is poised to announce the construction of a car factory in Algeria, French newspaper Le Monde reported in its Wednesday edition.

A spokesman for Renault said no discussions had been concluded in Algeria but said the group is observing what is going on in a number of countries.

Le Monde said Renault would build the factory at Rouiba on the outskirts of the capital Algiers and would assemble the Logan and Sandero models, sold under the Dacia marque, as well as the Symbol, currently built in Turkey.

To conform with Algerian regulations, Renault would have a 49 percent stake in the venture, partnering with state-owned SNVI, although the French manufacturer would run the site.

Le Monde said Renault wanted to set up the factory to consolidate its number one position in the local car market. It sold 17 000 Dacia-badged vehicles and 39 000 Renaults last year, giving it almost a quarter of the market.

"It couldn't maintain this level without a local investment," the paper quoted a diplomat as saying.

The project has yet to get the green light from Algerian authorities but would help the country's ambition to build up an automobile industry, Le Monde said.

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