The largest car manufacturer in the Middle East, Iran Khodro (IKCO), has taken the first step in establishing a production site in Algeria by launching a joint venture with the African country called IKCO-ALGERIA, and dispatching the required equipment for setting up a production line there.
In a meeting with the CEO of Algerian industrial group Famoval, IKCO’s CEO Hashem Yekehzare stressed the necessity to follow the timetable of the project, adding:
”Today we sent the first shipment of the equipment for production line to Algeria. We are supposed to install them by March 20 and start our SKD production by June 2017.”
He also noted that the agreement to establish IKCO’s site in Algeria was signed in the early months of this year with an Algerian company.
“Iran Khodro’s investment in the project is made through providing the required equipment for a production line in the African country and offering engineering knowhow,” he said.
Algeria’s Ambassador to Tehran, Abdel Moneim Ahryz who was attending the meeting praised the expanding ties between Iran and Algeria saying with the considerable cultural commonalities between the two sides, the agreement can pave the way for further economic relations.
“The agreement can play a key role in the expansion of economic and political relations between Iran and Algeria,” he added.
For his part, Famoval CEO said, ”Many leading foreign far manufacturers have already invested in Algeria but we are determined to be the third largest company in the country after Renault and Hyundai.”
He went on further saying that his company has set specific targets to rise to the top of the list of leading car manufacturers in the region’s export markets.
Muhammad Rahmoud announced the joint venture, IKCO-ALGERIA, has already been registered, adding:
“We insist that in the first two years of the venture operation, the manager of the joint venture be chosen by IKCO’s top management given their high technical knowhow and experiences.”
“According to our timetable, 8,000 units of Dena are set to be produced in 2017 with a localization of 5 percent but the figure will reach to 25,000 units in 2020 with a localization of 40 percent.”
The production capacity of the site is set to be 10,000 vehicles annually with a single shift per day. In the first phase, Dena vehicles will be assembled and its supply would be carried out after localization and receiving the required license for import.