Algerian-Chinese partnership on manufacturing of Foton-brand trucks
Car dealer KIV Group and Chinese car manufacturer Foton specializing in the manufacturing of heavy vehicles signed Thursday in Algiers a deal on the creation of joint company Foton Motors Algeria, for the establishment of truck assembly and manufacturing plant in Annaba.
The agreement was signed by KIV Group general manager, Ahcene Khodja, and vice-president of Chinese Group Foton, Yang Guotao, in the presence of officials of the Industry and Mines Ministry.
The project, which will be achieved under the 51-49% rule is worth $50 million. 50% of the budget will be provided by Foton Motors Algeria, while the rest of the funding will be supplied by banks, Khodja told reporters.
Built over 160,000 m2, this plant will create 300 direct jobs during the first year of activity, to reach 1,000 jobs after three years of operation, said general manager of KIV Group who is the exclusive representative of Foton in Algeria for over 15 years.
The first stage of the production will concern the manufacturing of three of the most sold Foton truck models, namely the trucks of 2.5 tonnes, 3.5 tonnes and of 6 tonnes. The plant will have annual production capacity of 5,000 units during the first year, and it is expected to reach 20,000 and 30,000 units) years within 5 years.
The first Foton truck will be released in 2018 with an integration rate of 10% during the first year of operation. The rate will gradually increase to hit 40% in 2022.