20.1 C
Bucharest
June 18, 2021
BUSINESS

Renault signs for first plant in Algeria

Renault will sign a pact Wednesday to build its first plant in Algeria during a highly symbolic visit by President Francois Hollande to the former French colony, a company spokeswoman said, news.com.au informs. According to France’s Le Figaro newspaper, the factory will be located in the second city of Oran and will be geared to the burgeoning local market. Car sales in the north African country are expected to touch 450,000 units this year against 300,000 in 2011. Renault already holds a 25 percent market share. According to the daily, the Algerian state will hold a 51 percent stake in the venture and Renault will hold the rest. It will produce the Renault Symbol, a sedan based on its Clio compact sold mainly in markets where hatchbacks are not traditionally favoured. The plant will have an initial capacity of 25,000 vehicles annually from 2014 and will rise to a maximum yearly output of 75,000, according to Le Figaro. Hollande goes there on a two-day visit today, accompanied by a dozen government ministers and senior executives from top French firms. The aim of the trip is to try and end simmering resentment over French colonial rule and buttress trade ties with the world’s fourth-largest gas exporter.

Related posts

NEWS IN BRIEF

Test

PM Citu: Romania’s economic growth means more jobs, but also attractiveness for foreign investors

NINE O'CLOCK

Isarescu: Romania will close the budget within target, no cuts needed in 2013