✏️ BY: Dr. Hana Saada
Algiers, Algeria | May 20, 2024 — In a strategic move to expand its global footprint, Chinese automotive manufacturer Geely is eyeing Batna, Algeria, for the establishment of a new car manufacturing plant. On May 18, a delegation from Geely visited the Batna province to present their ambitious investment project to local authorities. The delegation, received by Batna’s Governor Dr. Mohamed Ben Malek, has requested a 50-hectare plot for the construction of the factory.
“The Governor of Batna, Dr. Mohamed Ben Malek, welcomed a delegation from Geely Automotive today,” stated the provincial administration. “The delegation proposed an investment in the automotive industry and requested a 50-hectare plot for building a car manufacturing plant.”
Governor Ben Malek responded positively to Geely’s proposal, suggesting several potential sites for the project, including:
– Ain Yaqout Industrial Zone
– Djerma Activity Zone
– Lazhar Activity Zone
– Zana El-Bayda Activity Zone
– Seqana Activity Zone
In addition to their investment offer, the Geely delegation inquired about the possibility of reviving the former Kia plant, contingent on the completion of necessary administrative and legal procedures. The Kia plant, owned by Globale Industries, is currently under judicial procedures and is set to be reclaimed by the state.
The provincial administration considers Geely’s investment as a significant opportunity to diversify Batna’s economy and create new employment opportunities for the region’s youth.
Significant Investment and Future Production Plans
Geely’s commitment to investing in Algeria was highlighted earlier this year. In March, Sodivem, Geely’s Algerian partner, revealed that the Chinese automaker plans to invest $200 million in a vehicle assembly plant in Algeria. “Geely aims to invest $200 million in an assembly plant in Algeria,” stated Sodivem’s Deputy General Manager, Mohamed Gharbi, to Asharq Business. “The plant will have an annual production capacity of 50,000 vehicles, with the first model, the GX3, rolling out in 2026.”
Geely officially commenced its operations in Algeria on December 30, 2023. The brand introduced several models to the Algerian market, including the Geely GX3, priced from 1,970,000 DA, the Geely Coolray from 2,800,000 DA, as well as the Geely Starray and Geely Emgrand. The company plans to sell its allocated share of 39,000 vehicles starting in 2024.
Global Recognition and Future Prospects
Ranked among the top 10 automotive companies globally by sales volume, Geely is renowned for its extensive and modern range of vehicles, which includes everything from luxury sedans and sophisticated SUVs to rugged off-roaders and budget-friendly models. The group’s portfolio includes several prestigious brands, such as Volvo and Lotus, known for their high standards of quality and innovation.
This investment comes as part of a broader trend of automotive expansion in Algeria. In December, Italian automaker Fiat, part of the Stellantis group, inaugurated a factory in Oran. Chinese manufacturer Chery is set to launch its plant in Bordj Bou Arreridj this October. Additionally, another Chinese automaker, Jac, represented in Algeria by Emin Auto, plans to establish an assembly plant in Ain Témouchent.
Most recently, Chinese brand Jetour announced plans to construct a vehicle manufacturing plant in Bordj Bou Arreridj, with the first car expected to come off the production line by December 2025.
With Geely’s substantial investment and other international manufacturers establishing their presence, Algeria is poised to become a significant hub for automotive production in North Africa, fostering economic growth and technological advancement.
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