Stellantis will spend more than 200 million euros ($213.3 million) to manufacture four Fiat models in Algeria, the automaker said on Sunday.
“The 500 Hybrid will be the first Fiat to be built here followed rapidly by the Doblo and, in a few years, a brand-new model – now still in the hands of our designers – will also be produced in Algeria,” Fiat brand CEO Olivier Francois said in a release.
Construction of the plant, which will be in Oran, will be completed by August with production of the the Fiat 500 Hybrid expected by the end of the year, the company said.
By 2026 the plant will have created nearly 2,000 local jobs and have production capacity of 90,000 vehicles a year.
Stellantis says that Algeria is one of the key contributors to its aim to sell 1 million vehicles a year in the Middle East-Africa region by 2030, with 70 percent of those sales coming from cars produced in the region.
Stellantis signed a framework agreement last October with Algeria to make Fiats in the county.
The business climate in Algeria has been difficult for automakers trying to produce vehicles there. In 2019 the government effectively banned the importation of knockdown and semiknockdown kits, as well as used cars from abroad.
Renault, VW Group and Hyunda-Kia shuttered their factories in the country in 2019-20, as a result of new tariffs and also a crackdown on corruption.
But now the government is looking to restart the industry.
Renault also has a plant in Oran, which is where PSA Group, which merged with Fiat Chrysler to form Stellantis in 2021, was preparing to open a factory when the earlier restrictions were announced.
Reuters contributed to this report