Peugeot maker PSA Group has signed a joint venture with three Algerian partners, worth $117 million, to start a car manufacturing unit for the Algerian market, it said on Sunday.
The French carmaker said it would hold 49 percent of the joint venture’s capital, representing a total investment of around 100 million euros ($117 million).
The Algerian partners are Condor Electronics, Palpa Pro and Entreprise Nationale de Production de Machines-Outils (PMO) who now share the remaining 51 percent shares among themselves.
The production unit will be fully operational in 2019 with local operations gradually starting from 2018, the car maker added.
The deal is expected to boost Peugeot’s presence on the continent, especially in North African where demand for luxury cars is said to be on the rise.