Chery to Invest $110 Million in Algerian Automotive Plant, Reveals ALC CEO Aïmène Cheriet
BY: Hana Saada
ALGIERS-Auto Leader Company’s CEO, Aïmène Cheriet, has disclosed that the Chinese automaker Chery is set to invest $110 million in establishing an automotive manufacturing plant in Algeria. The investment will be shared between Chery and its Algerian representative, Auto Leader Company (ALC).
Cheriet made this announcement in an interview with “asharqbusiness.com,” stating that ALC, the Algerian company representing Chery, has signed an agreement with the Chinese firm for the establishment of a production plant in Algeria, with a total investment of $110 million.
The CEO outlined that the investment distribution would follow a joint venture structure, with 65% held by the Algerian company and 35% by the Chinese partner. The agreement also includes plans for the production of three Chery models. Cheriet reaffirmed the commitments made during discussions with the Minister of Industry and Pharmaceutical Production on November 8th, where Chery expressed its intention to invest in a factory in Algeria, specifically in Bordj Bou Arréridj, to produce 100,000 vehicles annually.
Providing further details in the interview, Cheriet revealed that the production would commence with 24,000 cars in the first year, reaching 50,000 units in the second year, and finally achieving the target of 100,000 vehicles per year by the third year of industrial activity. This production capacity would enable the joint venture to start exporting vehicles to neighboring markets.
Cheriet emphasized, “The export of cars manufactured in Algeria will become effective, especially considering Algeria’s geographical location that allows for exports to African and European markets.” He added that, at this rate, “2024 will be the last year for Chery car imports to Algeria.”
However, specific details such as the production start date, the commencement of construction, the project’s dedicated area, and the involved equipment manufacturers were not disclosed in the interview. Cheriet did provide insights into Chery’s imports for the current year, stating that 10,000 Chery vehicles would be introduced to the Algerian market in 2023, adhering to the authorized quota set by Algerian authorities.
ALC, which officially launched the Chery brand in Algeria on November 9th, has already opened orders for the seven models available in the Algerian market, with the first deliveries expected in the coming days.
