Japan's automaker giant Nissan Motor on Wednesday signed here a joint venture agreement with an Algerian private partner to install a car assembly plant with an investment worth 160 million U.S. dollars, local media reported.

The plant is due to be established in Oran province, 400 km west of Algiers. It is planned to produce some 63,500 vehicles per year by the first half of 2020, according to the joint venture agreement.

The plant would create some 1,800 jobs, in addition to some 3,000 indirect job opportunities.

The Algerian partner will hold a majority stake of 51 percent in this project as stipulated by the country's investment law.

Algeria decided in 2015 to suspend car imports, while encouraging local operators to sign contracts with international automaker brands to install assembly plants in a bid to curb import bill and diversify the hydrocarbon dependent economy.

Since 2015, several assembly plants have been installed in Algeria, including those of Renault, Hyundai, Volkswagen, and Kia.