Companies that are investing in the car industry in Algeria will be able to produce 450.000 cars within the next four years, allowing for export abroad, Head of the General Assembly of Mechanics at the Ministry of Industry and Mines, Bachir Dehimi, said on Monday.
Dehimi said in the radio program at the third radio channel that the capital of companies that invest in the car industry in Algeria reached 400 billion dinars, which will allow to meet the needs of the national market and export abroad.
“Cars industry is gradually developing to be able after 4 years from now to export cars to the African market and Middle East countries that provide customs concessions in this area”.
“Conditions book that will be launched takes into account the facilitation of the task of economic dealers and requires the work to gradually increase the integration rate. It also imposes on the car manufacturers to encourage the establishment of the handling industry, export orientation and attention to the training of workers”.
As for the handling activity, Bachir Dehimi, explained that Algeria will be a promising market for economic traders in this area as allies of manufacturers and will find all facilities to work with factories that are located in close positions.
“It is believed that the installation process is easy and this is wrong because it requires a lot of complexity like training and qualification, but in return their will not be, in any case, the final stage of any project because the factory was found in fact for export and not to meet the domestic needs only “.
“Algeria is a young market in the car industry and has so far succeeded in developing this industry and producing equipment and machinery for public works. It is also a market that attracts investment”, he asserted, citing the presence of the world’s top five manufacturers like Peugeot and other leading companies that are still being studied for investment in this field”.
French company Peugeot signed an agreement, on Sunday, with Algerian partners to set up a Peugeot and Citroen plant in Algeria, and production will start as from 2018.
Production of the first cars is likely to start in 2018, and will reach its peak in 2019, Peugeot North Africa and Middle East director, Jean-Christophe Quémard, said.
After the collapse of oil prices in the summer of 2014 and the decline of Algeria’s revenues by at least 95% on the export of oil and gas, the government imposed on representatives of car companies that were importing and selling only, the opening of production units, with significant restrictions on imports.