Algeria to produce “Mercedes” trucks, cars in 2014

A senior delegation from the German group “Daimler” will visit Algeria on Tuesday to sign a final agreement with the Ministry of National Defense, to initiate the implementation of the Economic Partnership Agreement on the establishment of three companies with mixed capital between Algeria – United Arab Emirates and Germany, in the framework of activating protocols of agreement, that were signed in order to develop the national mechanical industry related, according to the Ministry of national Defense, to establishing three factories in Rouiba (Algiers), Tiaret and Constantine, to produce heavyweight trucks in the capital and vehicles of average size in the area of activity in Bouchagouf, in Tiaret and engine production for each type of species listed in Constantine (eastern Algeria).

The Algerian side is represented by the Ministry of National Defense and the National Company for Industrial Vehicles, representing the United Arab Emirates “UAE Investment Fund “Abaar”, and as a

technological partner, the German company “Daimler” according to the complementary finance law measures for the year 2009.

Ministry of Defense, announced that the company Rouiba will produce 17000 “Mercedes” units annually, according to international quality standards applied by Mercedes at its plants around the world, adding that the same standards will be applied in both Tiaret, which will produce 10.000 SUVs and wagons of utility of average size annually, while the production site of engines in Constantine will produce 26,000 engines with water cooling by licenses production for the Marks [Meto – Deutz – Daimler] respectively, to prepare the cars and industrial machinery, agricultural machines, and machines of public works, as the production will be launched in 2014 at the site of “Imo and Ouad Hamimim” after the completion of enterprises and investments necessary for training 300 young people, who will be employed and trained according to Daimler standards.

“Abaar” share of in the project is estimated at 24.5%, while the rest of the quota will be owned by the group of German companies specialized in mechanical industries, which are “Man” and “Ferrostaal”

to build factories, while the International Petroleum Investment Company “IPIC”, in addition to the company “Daimler”, “Deutz”, “MTO” and Rheinmetall”.

The total value of investment between Algeria and the Alliance of “Abaar” and “Daimler” is 720 million dollars in the three projects, in each of Tiaret, Constantine, where they will employ directly 900

engineers and technicians, and the expected production will cover 100% of the needs of the defense and interior ministries of the vehicles and trucks, and will export in the second phase.

Ministry of National Defense spoke about the establishment of three schools to train employees of the three factories.