PSA Peugeot Citroen in a joint venture with Aliko Dangote, chairman of Dangote Group and five Nigeria state governments, has revealed plans to start assembling cars in Nigeria by the first quarter of 2019 through.
Jimi Lawal, an adviser to the Kaduna state governor, told Reuters on Tuesday that the Joint Venture, Peugeot Automobile Nigeria Limited, located in Kaduna, would assemble 3,500 units in its first year and ramp up to about 10,000 units.
“The first vehicle should come out by the first quarter of next year. We are hoping that the factory will be completed by December. The land has been identified…we have advertised for a contractor that will build the factory,” he added.
Peugeot had said it would build its 301 sedan in small volumes at a plant operated by PAN, adding that the vehicles would be produced from semi-assembled kits of parts shipped from its plant in Spain.
It added that Nigerian production of additional models such as the 308 compact and 508 might follow later.
According to Lawal, Dangote will hold a majority stake in the joint venture, which is with five northern states, while Peugeot Citroen will own a 10 per cent stake in the local joint venture company and operate the plant.
The states, he said, were Kaduna, Jigawa, Kebbi, Katsina and Kano, which would provide off-take for cars built at the Kaduna plant.
“Negotiations are still ongoing,” Peugeot said, without providing details.
Dangote, in alliance with two states and the Bank of Industry, had made a bid to acquire a majority stake in PAN after the Asset Management Corporation of Nigeria sought to sell some of the assets it bought in the wake of the banking crisis of 2009.
Lawal said PAN would start with N3.5bn ($10m) of equity and working capital of about $5bn, adding that the company would raise additional capital.
Frontpage October 18, 2019