French carmaker PSA Group has invited Iran Khodro (IKCO) to set up a production line for Peugeot cars in Algeria, (IRNA) reported.
PSA executive vice-president for purchasing, Yannick Bézard, on Tuesday visited Tehran-based Iran Khodro which has signed production deals worth 700 million euros with PSA.
Bézard said Iran Khodro can either provide Peugeot with auto parts it needs at its Algeria site or establish a production line in the North African country as a member of the French automaker.
“Iran is a competitive country in terms of energy and human resources, and therefore we will apply all our quality standards in the country,” IRNA quoted him as saying.
Peugeot signed a joint venture with three Algerian partners last November to launch a manufacturing unit building cars for the Algerian market with a total investment of around 100 million euros.
According to the carmaker, a production unit will be fully operational in 2019 with local operations gradually starting from 2018.