German, Emirate companies to set up military industry in Algeria

The Algerian Ministry of Defence and the Emirate group, Aabar, have signed an agreement to manufacture military vehicles according to a report by a body of the National Popular Army (ANP) published in the El Djeich newspaper.

Koubeissi Khadem, Chairman of the Board of Directors of Aabar, quoted by the Arab newspaper in its latest issue, said the contract totalled US$ 720 million, a share of which will be pumped into the Tiaret's plant in the centre of the country.

The Tiaret complex will spend 120 million euros to produce 10,000 vehicles in two years, while armored engines will also be produced at a cost of 200 million euros.

The site, taken back by the army, following a decision by President Abdelaziz Bouteflika in July, was expected to host, for about 20 years, the project of the assembly line of FIAT which never materialised.

The public investment funding of the Emirate of Abu Dhabi, Aabar Investments, pa rtnered five German companies to produce about 10,000 vehicles per year. Director of Military Industries, Colonel Rachid Chouaki signed the agreement with the representatives of the Emirate and German companies.

The German companies, Man Ferrostaal, Daimler, Deutz MTU and Rheinmetall will handle the engineering aspects of the project.

To deliver on these projects, three joint stock companies have been created by Algerian, German and Emirate groups.

Besides the Tiaret complex, two other plants located in Constantine in the east were invited by the new partners of Algeria to manufacture light and armoured vehicles.

The Ministry of Industry is also involved in the project through the National Company of Commercial Vehicles (SNVI), which already manufactures trucks and buses in Rouiba, 30 km east of Algiers.

It is expected that these partnerships will boost the sub-contracting sector in Algeria, which generates four million euros, through SNVI's activities.

Algeria plans to adopt a policy of industrial clusters, aimed at gathering industries of the same purpose in the same place.

This is also advocated by the Union of Professionals in the Automobile and Engineering Industry, its chairman, Brahim Bendras, said in an interview.

Algeria has not yet embarked on the assembly of cars, despite contacts with Iranian, Korean and Chinese manufacturers.

The CEO of Man Ferrostaal, Mathias Michels and the officer in charge of the logistics of the armed forces of the United Arab Emirates, General Fares Mohamed Ahmed Mezroui in July attended the signing ceremony of the agreement in Algiers, along with the Deputy Minister in the Ministry of Defence, Abdelmalek Guenazia.

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