VOLKSWAGEN, ALGERIA’S SOVA SIGN DEAL TO ASSEMBLE VW CARS
ALGIERS, -- German car manufacturer Volkswagen and its official representative in Algeria, the Sovac group, have signed a memorandum of understanding (MoU) to set up a plant to assemble VW cars in Algeria.
The assembly plant, which is slated to begin production in June 2017, will be built in the industrial zone of Sidi Khatab in Relizane, about 300 kilometres west of here, The plant's capacity will reach 12,000 units in the first year of operation and hit 100,000 vehicles year after five years.
This MoU was signed here Sunday by the Executive Vice-President of Volkswagen for commercial cars, Joseph Baumert, and Sovac Group chief executive officer Mourad Oulmi, in the presence of Minister of Industry and Mines Abdessalem Bouchouareb.
They two parties also signed a technical agreement to ensure the transfer of technological expertise in the car industry field to Algeria.
The project is expected to involve an estimated investment 170 million euros. Four models will be manufactured by the plant, namely Volkswagen Golf 7, the Seat Ibiza, Skoda Octavia and Volkswagen Caddy. The first car is set to roll off the assembly line June 2017.
More than 1,400 jobs will be created once the plant becomes operational.
Algeria is set to turn out 500,000 cars by 2019 through various car manufacturing plants.
Source: Nam News Network