Chinese carmaker Jetour to build assembly plant in Algeria

Chinese car company Jetour is planning to build a car assembly plant in Algeria, taking advantage of incentives offered to industrial projects.

Earlier this week Jetour told AGBI that it is planning to start a manufacturing unit in Dubai as a springboard to supplying the UAE and the rest of the Gulf.

Jetour will build the Algeria plant in the north-eastern province of Batna, the provincial authorities said in a statement carried by local media. 

The plant will be based on a system called semi-knocked down, which involves dismantling and packaging up parts of a vehicle for shipment to other assembly plants where the parts will then be re-assembled.

“Jetour is expected to launch the project for a car assembly unit in Batna province shortly,” the Batna statement said.

Last month, the Algerian Industry Ministry signed an initial agreement with Jetour for the establishment of car industries.

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The Algerian press agency said at the time that the deal aims to encourage manufacturers such as Jetour to rely more on products and components made in Algeria.

“Developing a local subcontracting ecosystem is also at the heart of this approach, by encouraging investment in producing spare parts for domestic and international markets,” the agency said.

Another Chinese car marker, Great Wall Motor (GWM), announced in March it would build a car assembly plant in Algeria as a joint venture with a local partner to take advantage of steady growth in the Algerian market. 

Other automobile makers such as Fiat, Kia and Peugeot already have production units in Algeria.