The commercial vehicles plant of the Italian brand Iveco, planned in Bouira in partnership with the Algerian Group Ival, will be operational late 2016, announced Tuesday in Algiers, CEO of Group Ival Mohamed Baïri.

"The study of the plant for the manufacturing Iveco brand commercial vehicles in Algeria has been completed and the negotiations on the plant creation progressed. In mid-October, the partnership agreement on the establishment of the joint-venture will be signed," Baïri announced.

In first stage, the plant will assemble "from 1,000 to 1,500 vehicles per year," with an integration rate expected to stand between 17 and 20%.

Bairi was speaking on the sidelines of the ceremony of the signing of a Memorandum of Understanding for the creation of an industrial cooperation joint committee between Algeria and Italy.

Noting that the file of the new plant will be submitted in early October to the National Agency for Investment Development (ANDI), the official said that "the land base that will host the new plant is already identified and the plant will be located in the province of Bouira."

According to him, the first car to be manufactured by the Bouira plant is the Iveco Dail.

Moreover, Baïri explained that in addition to the assembly "the plant will also include a spare part manufacturing unit, in accordance with the requirements of the Ministry of the Industry and Mines.

Several sub-contractors have already been indentified for this unit.