Renault refusal to locate plant in Jijel delayed negotiations

"The talks have taken more time that planned. The foreign partner considered that the location proposed for the plant is far from the source of employment and it doesn’t offer  necessary opportunities," Benmeradi told the press in the sidelines of the Algerian-German Joint Commission.

Benmeradi said that the Algerian government decision to locate the plant in this province of Jijel was dictated by the need for creating equilibrium between the regions in terms of investment, APS reported.

Renault first set up business in Algeria in 1922.founding the Société Algérienne des Automobiles Renault (SADAR) to distribute Renault vehicles. SADAR quickly became the largest vehicle distribution business in the country.

With the creation of CARAL plant (Construction des Automobiles Renault en Algérie) in 1959,Renault started producing vehicles in Algeria. While activity was discontinued at SADAR and CARAL in 1969 following nationalisation.In 1997 sales and marketing structure entirely dedicated to the domestic market, Renault Algérie Spa.

Renault originally had a preference for a factory at Rouiba, on the outskirts of the capital Algiers, and plans to assemble the Logan and Sandero models, sold under the Dacia marque, as well as the Symbol.Renault holds the premier position for sales in the Algerian car market.

"We don't want to let just anyone build a factory in Algeria. If the Algerian government wants a factory in Algeria, we'd rather it were Renault," Renault Chief Executive Carlos Ghosn  said at the opening of the company's new factory in Tangiers on the 9 February 2012, Reuters reported.