Dec. 18 (Bloomberg) -- Renault SA, Europe’s third-largest carmaker, plans to build a factory in Oran, Algeria, as part of its push for growth in Africa.
An agreement with the Algerian government will be signed during French President Francois Hollande’s visit to the North African country this week, spokeswoman Raluca Barb said today in a telephone interview. The factory will eventually produce as many as 75,000 vehicles. Details will be discussed at a press conference in Algiers tomorrow.
Renault is looking to Africa for growth, pushing rugged, no-frills models like the Dacia Logan as its sales decline in Europe faster than any other major carmaker. As part of the expansion, the French manufacturer and its partner Nissan Motor Co. are ramping up production at a 1 billion-euro ($1.3 billion) plant in the Moroccan port city of Tangier.
The new factory in Algeria will assemble models in the same segment as Renault's Symbol, a sedan based on the Clio compact. Plans for the factory were earlier reported by Le Figaro.
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