A shareholders’ agreement was signed on Monday (December 17th) in Algiers between the Algerian private company Global Group and the automaker Hyundai Motor Company for the construction of a truck and bus assembly plant in Batna.
The partnership pact was signed by Global Group CEO Hassen Arbaoui and Hyundai Motor Company representative Donho Choi on the sidelines of the 5th Algerian-South Korean Business Forum co-chaired by Prime Minister Ahmed Ouyahia, and his South Korean counterpart, Lee Nak-Yon, on an official visit from December 16 to 18 in Algeria.
In a statement to the press, Global Group Secretary General Mohamed Tahar Boudiaf said the future plant will be operational by the end of 2019, stating that the project will focus on the manufacturing of trucks and buses. and not a simple assembly plant, and is the first of its kind at the African level.
The partnership pact, which stems from an agreement reached between the two parties in early 2018, involves an investment of more than $ 100 million, Global Group said in a statement.
The plant will create at least 5,000 direct and indirect jobs, as well as a national integration rate of about 40% at the start of the project to reach a range of between 50 and 60% over two to three years said the same manager.
According to forecasts, the two partners aim to produce “as fast as possible” nearly 40,000 units of trucks and buses per year.
The South Korean giant Hyundai is already established on the Algerian market for the assembly of light vehicles in particular, in partnership with the Tahkout group.
Global Group is already working at its Batna plant to assemble the cars of South Korean brand Kia and Hyundai trucks and buses.