Algeria will get a Renault assembly plant

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Renault SA (RNO.FR) confirmed Thursday that it’s working on a plan to build a vehicle assembly plant in Algeria as a way to avoid high import duties.

“It’s just a project. Nothing has been concluded,” Renault Chief Operating Officer Patrick Pelata told journalists on the sidelines of a presentation of Renault’s 2009 results. However, “the discussions are well advanced,” he said.

Building an assembly plant isn’t a viable option for most car makers because their sales volumes in Algeria don’t warrant such an investment.

“But we have 25% of the market,” Pelata said.

The cars won’t be exported from Algeria, he said.

According to a recent French press report, Renault wants to build a plant on the outskirts of the capital Algiers to assemble its Sandero and Logan low-budget, no-frills cars.

The report said Renault would have a 49% stake in the venture alongside state-owned SNVI, and would have operational control of the facility.