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© Volkswagen Group Business | July 28, 2017

Volkswagen and Sovac S.P.A. inaugurate plant in Algeria

The Volkswagen Group and its local partner Sovac S.P.A. inaugurated their multi-brand joint venture Sovac Production S.P.A. in Relizane, 280 kilometers to the South-West of Algiers.
The assembly plant can produce up to 200 units of the models Volkswagen Golf, Volkswagen Caddy, Seat Ibiza and Škoda Octavia per day. From 2018, the Volkswagen Polo and Škoda Fabia are to be added to the local production portfolio.

Dr. Herbert Diess, CEO of the Volkswagen brand and Member of the Group Board of Management of Volkswagen Aktiengesellschaft, said: “The African continent offers considerable growth opportunities for the Volkswagen Group. With the new plant in Algeria, we are expanding the presence of Group brands in North Africa together with our partner SOVAC. We are bringing leading modern technology to Africa, especially with the Volkswagen Golf. In Africa too, the Volkswagen brand will write a major new success story.”

The main investor is Sovac S.P.A., which also provides the Managing Director of Sovac Production S.P.A. as the majority shareholder. The Volkswagen Group holds a minority stake in the joint venture company. Currently, more than 550 employees work at the new factory. In the long term, up to 1'800 jobs are to be created at the Relizane plant. There will also be additional jobs with suppliers and logistics service providers.

Mourad Oulmi, CEO of Sovac S.P.A., said: “We are very proud of our partnership with the world’s largest carmaker. We have been the official representative of the Volkswagen Group in Algeria for more than 10 years. Today, a new era in our partnership has started. From now on, SOVAC Production will be part of the Group. Together we will create an industrial network which will not only include vehicle production but also a supplier structure meeting the requirements of local production.”

Dr. Josef Baumert, Member of the Board of Management of Volkswagen Commercial Vehicles responsible for Production, said: “We are pleased to be able to start Caddy production here with our partner SOVAC S.P.A. These vehicles will be produced to the same high Volkswagen standards as at all our plants throughout the world. These standards ensure the quality that customers connect with us. Producing the Caddy here is a perfect fit. As an all-rounder it offers flexible solutions for everyday challenges. With generous cargo space, extensive standard equipment, many assistance systems and frugal engines, this is a vehicle with many talents for families and companies. And with the new production facility here at Relizane, we are opening up new markets and creating local jobs.”

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August 22 2017 10:36 AM V8.6.0-2