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27/07/2017 - 19:12hs

Volkswagen opens plant in Algeria

The manufacturing unit in the Relizane area is the carmaker’s first in the Arab country, the outcome of a partnership with the local group Sovac.

Relizane – Algeria’s minister of Commerce, Ahmed Saci, and the chairman of Volkswagen’s Automotive Division, Herbert Diess, opened this Thursday (27) an auto assembly plant in the industrial zone of Sidi Khettab, in Relizane, Northwest Algeria. It is the automaker’s first unit in the North African country. The information is from news agency Algérie Presse Service (APS).

Spanning 150 hectares, the plant saw 170 million euro in investment and boasts a production capacity of 12,000 units in its first year, which is set to increase to 100,000 in five years.

The plant is the result of an agreement reached by VW and Algeria’s Sovac group in November 2016, as previously reported by ANBA. Volkswagen had been planning a facility in Algeria as early as 2010, as made public by ANBA in January 2011.

The unit will assemble passenger cars and SUVs under the Volkswagen, Skoda and Seat brands, all of which are owned by the former. APS said the rate of locally-made content will start at 15% and increase to 40% within five years.

*Translated by Gabriel Pomerancblum

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