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Hyundai forms JV for commercial vehicle production in Algeria

Hyundai Motor Co. on Dec. 17 signed a joint venture agreement with Algeria's Global Group to establish a vehicle production plant in the Algerian city of Batna.

Financial terms were not disclosed in the South Korean automaker's announcement of the deal, which expands on a partnership first established in 2016.

Under the new agreement, the companies will jointly manufacture Hyundai commercial vehicles including the Xcient, Mighty, Solati and County models. The planned factory is expected to become operational in 2020, initially producing approximately 6,500 units annually.

Hyundai also expects the JV to help boost its sales and customer services networks in the region.

Hyundai said annual demand in Algeria's commercial vehicle market is forecast to nearly double to 22,000 units by 2025 from the 12,000 units produced this year. The company added that in 2017, it accounted for approximately 46% of market demand in the country, with sales of about 3,700 units.