Iranian car manufacturer Saipa will open in Tiaret (in the Western part of Algeria) a car assembly unit in collaboration with the local firm Tahkout, said official Algerian press agency APS, citing a high official from the ministry of industry. “Construction works for Saipa’s car assembly unit will start before the end of 2016,” announced the director of industry and mines, Djameleddine Tamantit.

“The project will be implemented on a site hosting a former plant located in the Zaaroura industrial area which covers 24 hectares,” the official added, highlighting that rehabilitation works were ongoing.

The upcoming plant, a project benefiting from the 51/49 law for the promotion of foreign investment in Algeria, will produce 100,000 cars a year. It should generate 400 jobs upon its development, and 1,100 jobs more later.

Initially, vehicles will be assembled at the plant while 30% of production will be directed to integration and outsourcing later.