Automotive: New factories by Peugeot & Nissan

Oran: Launch of the Peugeot plant project in Tafraoui

The project to build a Peugeot Citroën Production Algérie (PCPA) plant was launched on Sunday in Tafraoui, in the wilaya of Oran, as we learned from Jérôme Fournier, CEO of the French group's industrial project in Algeria.

"The construction site for the future Peugeot Citroën plant was launched on Sunday on 120 hectares of land in the Tafraoui industrial estate in Oran. 80 hectares are intended for suppliers and 40 hectares for the installation of the plant's own equipment," Jérôme Fournier said in a statement to the APS on the sidelines of the press conference hosted by PSA Group Vice-President for the Middle East and Africa, Jean Christophe Quemard.

From 25,000 over 50,000 to 75,000 vehicles per year

The plant will enter its production phase in the first half of 2020 with a capacity of 25,000 vehicles per year with the objective of increasing this capacity, four years later, to 50,000 vehicles and then to 75,000 units, said the same manager.

The CEO of the French automotive group's project in Algeria also indicated that significant resources will be put in place to ensure a production of 10 vehicles per hour.

"This capacity can be increased according to the number of teams," he said, adding that the first series of vehicles will be produced at the end of next January.

1,000 direct and 4,000 indirect jobs

The Tafraoui plant will produce three models of vehicles that meet the demand of the Algerian market and customer. It will create 1,000 direct and 4,000 indirect jobs, Jérôme Fournier added, adding that the integration rate will be 15 FPs in the third year of production, reaching a rate of 40 FPs after six years.

For his part, the Director General at the Ministry of Industry and Mines, Mustapha Hamoudi, told APS that the project "will contribute to the creation of new jobs, provide added value to the national economy and allow the export of vehicles and spare parts".

He also stressed that the automotive industry is one of the government's priorities.

At his press conference, PSA Vice President for the Middle East and Africa, Jean Christophe Quemard, indicated that the group he represents is available to produce a large number of vehicle models with the agreement of the Algerian authorities.

"The PSA Group will respect the clauses of the specifications and regulations in force", he assured.

As a reminder, a memorandum of understanding for the construction of a Peugeot Citroën production assembly plant was signed in November 2017. The company's capital is divided according to rule 49/51 between the national industrial vehicle production company (PMO) of Constantine, the Condor group, a pharmaceutical operator on the Algerian side and the French PSA group.

Source: HUFFPOST MAGHREB 22 July 2019 – translated by fairtrade



Nissan invests $160 million in a factory in Oran

The Japanese car manufacturer and its local partner, the Hasnaoui group, announced on Wednesday 13 February the launch of a new factory project in Oran, representing an investment of 160 million dollars.

Peyman Kargar, Nissan Vice President and Group President for Africa, the Middle East and India, announced on Wednesday, February 13, the creation of a joint venture with its Algerian partner, the Hasnaoui Group, to launch a plant capable of producing up to 63,500 vehicles per year, "in order to meet both African and national demand[the continent's second largest automotive market after South Africa]".

This plant, which will be located in Oran - but whose precise location has not yet been decided, says President Africa - represents an investment of 160 million dollars (141 million euros) for the two partners, whose respective interests in the joint venture have not been disclosed. The site is expected to come on stream in the first half of 2020, and to gradually ramp up to reach its full targets in 2021-2022.

1,800 direct jobs

"This new plant is part of the group's strategy to double its presence in Africa, the Middle East and India by 2022. In Africa, it will be added to our South African, Egyptian and Nigerian sites, bringing our production capacity to 200,000 vehicles per year," says Peyman Kargar.

Nissan and Hasnaoui received government approval for this project on December 6, 2018, they said. "The negotiations with the authorities went well, because their speech is very clear: they want to limit imports and encourage local production, which is indeed a necessity," says the zone president, adding that Nissan has committed to a local integration rate of 15% after two years of activity, and 40% after four years. "It's a huge challenge," he comments, adding that "this project will generate 1,800 direct jobs, and at least 3,000 if subcontractors are included. A workforce that will have to be trained on site by Nissan teams.

Competition with ally Renault

While the Japanese manufacturer's ally, Renault, has already had its own factory in Oran since 2014, the two structures are intended to be totally independent of each other. "Each of us works with our own local partner. These are two different joint ventures with their own ambitions and market conquest strategy. So we are rather positioning ourselves as competitors," says Peyman Kargar.

However, the one whose Dubai office is located in the same premises as Fabrice Cambolive's, his counterpart at Renault, ensures that synergies between the partners - as well as with Mitsubishi - will continue to be strengthened. "This is the will of the group, because today no car manufacturer can do it alone. In Morocco, for example, the Tangier plant is used by both manufacturers," he explains. When asked about the Carlos Ghosn case, he highlighted his "excellent and regular relations" with his partners. "The relationships between the three companies are not based on a single person," he says.

Source: jeuneafrique, 13 February 2019 By Nelly Fualdes – translated by fairtrade