Hyundai Motor Co. and Global Group of Algeria will jointly produce Hyundai’s commercial vehicles in Algeria as Hyundai continues to expand its foothold in the global commercial vehicle businesses.

Hyundai and Global Group signed an agreement to establish a new plant in the city of Batna, Algeria to produce major commercial vehicle models from Hyundai, including the Xcient, Mighty, Solati, and County, according to the automaker.

The new plant is expected to assemble the aforementioned models from 2020 with an initial annual capacity of about 6,500 units, Hyundai said in a release. Hyundai will also strengthen its sales and customer services networks through the joint venture.

 “The joint venture will help Hyundai Motor to better serve Algerian customers with products and services that are specifically developed to meet their needs,” said Don Ho Choi, director and head of Commercial Vehicle Export Division at Hyundai Motor. “Through this partnership, Hyundai will build a momentum for further economic and industrial cooperation between Korea and Algeria”

Hyundai has been in collaboration with Global Group since 2016, which has helped expand its presence in the Algerian commercial vehicle market, according to the automaker.

The commercial vehicle market in Algeria has grown rapidly in recent years with the country’s firm economic growth based on stable exports of oil and natural gas, Hyundai said. Various developments and construction projects have also helped bolster demands for commercial vehicles.

Market experts forecast annual demand for commercial vehicles in Algeria to grow to as much as 22,000 units by 2025, nearly doubling from the 12,000 units produced this year. Last year’s industry demand was approximately 8,000 units and Hyundai accounted for about 46% of the market with sales amounting to approximately 3,700 units.