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EghtesadOnline: Iran’s second largest auto manufacturing company, SAIPA, will start production of spare parts in Algeria following a joint venture with the Algerian firm Tahkout Manufacturing Company (TMC).

The owner of TMC, Mohi Eldin Tahkout, told reporters on Sunday that the spare parts factory will be launched before the end of the current year, boursepress.ir reported.

He said the company is aiming to produce 300,000 spare parts annually and “1,000 workers will be employed in the factory.”

TMC is a local partner of Hyundai in Algeria, according to Financial Tribune.

TMC-SAIPA auto parts production plant in addition to catering to the needs of the Algerian market will provide the required infrastructure for expansion of the car production in the country.

This will be in line with the Algiers government’s rules on the operation of foreign automotive companies in the North African country that welcomes foreign investment but states that technology transfer is part of any JV.

According to Mehdi Jamali, CEO of SAIPA, in the second half of 2016 SAIPA-TMC started production of five models in Algeria.

“The models Tiba, Saina and Pride and Pride pickups are among the vehicles that will be produced in the country,” Jamali said.

According to the contract, the JV will produce 20,000 vehicles in the country per year.

SAIPA previously exported cars to Algeria, but this is the first time the two countries are setting up a joint venture to manufacture vehicles.

SAIPA will be able to produce more than 20,000 vehicles every year.

Saipa Iran Auto Iran auto industry Iran auto parts Iran-Algeria cooperation Tahkout