PSA Group has created a joint venture with three Algerian partners, meaning a production unit will be fully working in 2019 and local operations gradually starting next year.
PSA EVP, Africa-Middle East, Jean-Christophe Quémard, co-signed the deal in Algiers with the project partners to create an Oran-based manufacturing company building cars for the domestic market.
The agreement was signed as part of the France-Algeria joint economic committee (COMEFA), in the presence of Algerian Minister of Industry and Mining, Youcef Yousfi and French Minister of the Economy, Finance and Industry, Bruno Le Maire.
PSA Group will hold 49% of the new JV’s share capital, representing a total investment of EUR100m (US$116m).
As part of the project, PSA will support the development of Algeria’s automotive industry with a skills and training programme for employees as well as helping to expand the local supplier base.
“Algeria is one of Groupe PSA’s historical markets and we are particularly proud to set up a manufacturing base there,” said Quémard
“The country is at the centre of the Middle East and Africa region, which is a key driver of profitable international growth as part of our Push to Pass plan.
“The agreement will allow us to have production capacity in the heart of the region and thereby achieve our goal of selling 700,000 vehicles by 2021.”