Nissan, Groupe Hasnaoui to build car manufacturing plant in Algeria

WCN Editorial Team 15 Feb 2019 AFRICA BUILDINGS

Japanese automobile manufacturer Nissan Motor and Groupe Hasnaoui of Algeria will invest $160m in a new Nissan vehicle plant in Algeria to meet growing demand for vehicles in the country and across Africa.

The two companies have already received approval from the Algerian government and they will establish a joint venture in coming weeks.

The plant, with a capacity to manufacture 63,500 passenger cars and light commercial vehicles annually, will produce several models.

Both companies will announce the details of the product line-up later.

The Japanese company intends to double its presence in the Africa, Middle East and India region over the course of its ‘Nissan M.O.V.E. to 2022’ mid-term plan.

The growth strategy includes expansion of industrial operations into new markets such as Algeria. The move into the Algerian market follows the company’s announcement in 2018 that it will start manufacturing cars in Pakistan.

Algeria is expected to be the second-largest car market in Africa by 2021 and the government is working to diversify the economy and has set a target to increase production to 500,000 cars a year.

The Nissan car plant is expected to create 1,800 jobs in Algeria and support many more in the supply chain.

Nissan teams from Japan will work with suppliers to develop the local component industry through technical support, training and skills exchange.

Nissan senior vice president and chairman of the Africa, Middle East and India region Peyman Kargar said: “Nissan 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.”

The new plant will increase Nissan’s total potential capacity in Africa to 200,000 vehicles.

Nissan Algeria, a subsidiary of Groupe Hasnaoui, will expand its national network of 35 outlets in line with an anticipated increase in sales volume.

Groupe Hasnaoui president Sefiane Hasnaoui said: “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.”


Image: Nissan, Groupe Hasnaoui to build new car manufacturing plant in Algeria. Photo: Courtesy of Nissan.

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