Renault Opened New Algeria Plant To Produce Symbol With Parts From Romania
|   Thursday, November 27, 2014
Renault has opened a factory in Algeria to take advantage of the rapid market growth in North Africa. The new plant is responsible for producing the Renault Symbol sedan, which shares its platform with Dacia Logan 2 and is manufactured in parallel in Romania, as is the case with the parts used by the Algerians.

The new Renault production facility is located in the city of Oran, and is the first French manufacturing factory in Algeria after the country had gained independence from France in 1962.
Renault invested 50 million euro and holds 49 percent of the plant.

Renault's factory in Algeria has nearly 350 employees, all trained in various factories from the Renault-Nissan alliance, including Dacia's plant in Mioveni. Currently, the plant produces the Symbol, under the Renault brand, from SKD kits (partially complete, with some components being manufactured locally) from the plant in Pitesti, and sold only in Algeria.

Gradually, Renault will move production of the Renault Symbol from Pitesti to Oran exclusively for the market in this country. Meanwhile, Dacia will provide further Logans on the Algerian market, explain Renault Romania representatives. In addition, the Dacia plant from Pitesti will continue making the Renault Symbol for the Turkish market.

The Renault Symbol is second generation Dacia Logan version and will be the first car ever offered in Algeria equipped with a GPS navigation system. Renault is market leader in Algeria, with a rate of 25.5 percent. That market is tenth in the overall Renault brand sales standings. Thus, Renault accounts for nearly half of annual sales on markets outside the Old Continent. This fact allowed to he French at Renault to put some distance before rivals from PSA Peugeot Citroen, which had a strategy focused on Europe, and were more vulnerable to the global economic crisis and its effects on the European market.

Renault already has two factories in Morocco, and relies on the new facility in Algeria to take advantage of the growing markets of North Africa, although they will focus on production for the domestic market in the first phase of operation. Sales of new cars in major markets in North Africa totaled 759,000 units in 2012, according to IHS Automotive, but are expected to reach 880,000 units in 2015. The French say the Algerian market may come to exceed 500,000 units per year, having achieved 425,000 units in 2013.

In the first nine months of this year 265,000 new cars were sold in Algeria, showing a decrease compared to last year, but the French are more confident in Algeria's car market future.

Algeria is a country where 70 percent or more of the cars on the road are older than 10 years and the rate of vehicle ownership is 100 cars per 1,000 inhabitants, five times lower than in Western Europe. The market in Algeria is the second largest in Africa and has great potential for future growth. Renault officials announced that the average age of vehicles in the country is 16 years. The initiative of Renault opening a factory in Algeria was announced in 2012.
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