Anhui Jianghuai Automobile Co (JAC), plans to set up its first light-load truck assembly plant in Algeria, a report said.

The new plant is expected to be based in Algeria’s Ain Temouchent province, and will possess an annual capacity of assembling 10,000 light trucks, following the completion of the first phase, said the China Daily report.

The plant involved a total investment of $128 million and will be JAC's 19th vehicle assembly plant in the world and its first light truck plant in Africa, it said.

The company said it will be built through cooperation with Emin Auto, an auto dealer in Algeria.

JAC declined to reveal when the plant will be finished, added the report.

While speaking at the signing ceremony held recently in Algiers, Amar Agadir, director of the investment division of Algeria's Industry and Mining Ministry, said that the country has released new rules to encourage international automakers to found localised ventures in Algeria in cooperation with local companies.

JAC has witnessed rapid development since it first exported light trucks to Algeria in 2000.

From 2011 to 2015, JAC exported 94,000 light-load trucks globally. More than 30,000 of the trucks were delivered to Africa, and about 23,000 were sold in Algeria, further added the report.

Additionally, Zhang Peng, deputy general manager of JAC International Co Ltd, a JAC subsidiary based in Hefei, the capital of Anhui province, added that the plant will the company achieve higher market shares not only in Algeria but also in neighbouring countries.