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The factory is located in [[Fianarantsoa]] in the southern highlands of Madagascar, about 420 kilometres south of the capital [[Antananarivo]]. In 1986, the former president [[Ditier Ratsiraka]] initiated under his presidency the car production. Real soon Karenjy became the most important employer of the region. Following the fall of [[Ratsiraka]] in 1992, the very successful car production came soon to an end. Between 1994 and 2009 the factory was closed.