Chinese Automaker JAC Advances Plans for a State-of-the-Art Factory, Strengthening Local Auto Production and Export Capabilities

BY: Hana Saada 

Algiers, September 14, 2023 – In a noteworthy development that underscores Algeria’s commitment to boosting local manufacturing and reducing dependency on vehicle imports, Ali Aoun, the Minister of Industry, met with a delegation from the prominent Chinese automaker JAC. The meeting, held at the ministry’s headquarters, offered insights into the progress of JAC’s ambitious car manufacturing project in the Aïn Témouchent region.

Led by Gao Wenxing, the General Director of JAC’s Africa and Middle East operations, the delegation included Sashuvaroglu Nihat, Manager of Emin Auto, the official representative of JAC in Algeria, and a key partner in the Aïn Témouchent factory project. This encounter aligns with the Ministry of Industry’s oversight of JAC’s passenger and utility vehicle manufacturing initiative in Algeria.

According to a press release from the Ministry of Industry, JAC representatives took the opportunity to update Minister Ali Aoun on the factory’s progress, with a particular focus on the advanced infrastructure that will house the production equipment. The ultimate goal is to manufacture 100,000 vehicles annually, with over 30% local integration and 40% destined for export. Discussions also touched on the 2023-2024 import program for JAC vehicles, with some models set to hit the market before year-end, pending completion of import procedures.

Minister Ali Aoun reiterated his ministry’s unwavering support for the project, urging JAC’s representatives to fulfill their commitments promptly to meet the burgeoning demand for vehicles and contribute to Algeria’s economic and industrial development.

Emin Auto’s Transformational Journey in Algerian Auto Industry

Emin Auto, a prominent player in Algeria’s automobile distribution sector for over two decades, ventured into the automotive manufacturing sector around four years ago with the establishment of an auto production plant in Tamzoura, Aïn Témouchent. The plant aspires to produce 100,000 vehicles annually in the medium term, with a substantial portion earmarked for export.

The industrial project, currently at an 80% completion rate, encompasses various facets including pipelines, electrification, and concreting. Ultimately, the project is expected to create 1,700 jobs, with 380 direct positions at the onset. Additionally, a significant number of components, including engines, chassis, and cabins, will be manufactured onsite, further bolstering local integration. In the medium term, exports are forecasted to reach 40%.

Emin Auto’s partnership with JAC, a Chinese government-backed company, has been instrumental in this endeavor. The collaboration includes technology transfer through training Algerian personnel in China and deploying Chinese technicians for factory operations. JAC has also designated the African zone for the export of its products, strengthening Emin Auto’s position in the global market.

The Emin Auto factory, sprawling over 33 hectares, will produce 50,000 JAC trucks annually, along with 50,000 JMC utility vehicles and 5,000 SsangYong passenger vehicles and pickups. The project received over 8 billion dinars in funding from its own resources, and the infrastructure is designed to accommodate three production lines with integrated robotics.

Beyond the auto manufacturing plant, Emin Auto has plans for additional complementary units, including an engine manufacturing facility with an initial capacity of 40,000 JAC/JMC brand engines per year, set to double in the medium term. There will also be a unit for producing superstructures, chassis, cabins, and paint. The partnership has generated significant interest from more than 30 Chinese subcontractors looking to establish a presence in Algeria, fostering collaboration in the spare parts and accessories sector.

The collaboration between JAC and Emin Auto exemplifies the transformation of Algeria’s automotive industry, highlighting the nation’s determination to become a hub for local manufacturing and a major player in the global automotive market. With the shared vision of strengthening the country’s economic prospects, the partnership promises to drive Algeria’s automotive sector to new heights in the coming years.