December 17, 2012 / 7:25 PM / in 5 years

Renault to sign Algeria factory deal Wednesday: paper

PARIS (Reuters) - Automaker Renault SA (RENA.PA) will use a visit by French President Francois Hollande to Algeria to sign a final deal on Wednesday to build a plant there to serve the local market, Le Figaro newspaper reported.

Rain drops are seen on the logo of Renault car parked in front of French car manufacturer dealership in Paris, November 2, 2012. REUTERS/Christian Hartmann

Renault had said last week that the deal with Algeria was making progress but had yet to be finalized, following a memorandum concluded in May.

A spokeswoman for Renault declined to comment on Monday.

Le Figaro said in a preview of its Tuesday edition that Algeria would own 51 percent of the factory, with Renault holding the rest.

The site would have an initial capacity of 25,000 vehicles per year from 2014, with the potential to rise to 75,000, the paper added.

The Algerian auto market expanded by 47 percent in the first half of this year to 225,000 vehicles.

Reporting by James Regan and Cyril Altmeyer; Editing by Gerald E. McCormick

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below