Anhui Jianghuai Automobile Company (JAC) has signed an agreement with its distributor Emin Auto to set up a light-duty truck assembly plant in Algeria, according to a company press release. Involving an investment of about USD128 million, the plant will have an initial capacity to assemble 10,000 units per year. JAC general manager Xiang Xingchu said the automaker "respects and supports the new bill about vehicle market published by Algerian government" and is deepening "co-ordination and promotes the programmes of JAC light-duty truck assembly plant in Algeria to manufacture more trucks meeting the new bill and local customers' demand as well as provide better services".
Significance: JAC has already established 19 assembly plants in the Middle East, Southeast Asia, Central Asia, and South America, according to the automaker. This deal is a significant step towards the firm's expansion goals and comes as Algeria is trying to establish itself as a vehicle-manufacturing destination. The country has attracted new investment in vehicle production and assembly in recent years and is reportedly considering imposing rules to discourage vehicle imports in coming years. Algeria's new auto market bill also encourages automakers to co-operate with local dealers to build plants, according to Algeria Industrial and Mining Ministry Investment division director Amar Agadir. IHS Automotive expects total production of JAC's light commercial vehicles to grow by 6.9% year on year to 205,066 units in 2016, up from a forecast 191,768 in 2015.
