Renault, a French car manufacturer, is planning to establish a production plant in Algeria, after the investment promotion minister, Mohammed Benmeradi, confirmed in late November the resumption of talks between the firm and the government. The plant, which is scheduled to open in 2012, would produce 75,000 cars a year. Talks with Renault have been on and off for a number of years, but if a deal is agreed it would be a step forward for the local manufacturing sector. Volkswagen, a German competitor to Renault, has also expressed interest in setting up a plant in Algeria. A report in L'Expression, a local French language daily, said the amount of the investment would be around US$150m. According to the same report, the plant would be expected to produce passenger vehicles initially but then add in production of commercial vehicles.