China’s Jianghuai Automobile Company (JAC), based in Anhui province, plans to build a US$128m assembly plant in Algeria.

The plant will be the company’s first in Africa and will have an initial annual capacity of 10,000 units light trucks. The company did not reveal when the plant will be completed as it depends on local sales reaching a minimum level, according to a company insider.

A signing ceremony was held recently in Algiers with Amar Agadir, the head of investment at Algeria’s Ministry of Industry and Mining.

JAC is collaborating with local dealer Emin Auto to expand its presence in the country.

The company told local reporters that it exported 30,000 vehicles to Algeria between 2011 and 2015, including 23,000 light trucks, 2,000 mini-trucks and 5,000 passenger vehicles.