Algerian Handlers’ Partnership With Automotive Factories
Over 30 dealers in the handling field with the “Stellantis Algeria” group for the production of automobile accessories and spare parts begin their activity after obtaining official cooperation approval, the president of the Algerian Stock Exchange for Handling, Kamal Agsous, said.
Agsous counts the presence of 1000 handling companies in the Algerian market, of which 100 are capable of producing automobile spare parts, while the rest of the companies need rehabilitation, explaining that the process of reactivation can pass through the Competitiveness Enhancement Fund at the Ministry of Industry and Pharmaceutical Production, adding: “Without rehabilitation, small and medium-sized companies cannot cooperate with the assembly factories expected in the coming months in Algeria.”
The head of the handling stock exchange told Echorouk that 1000 small and medium enterprises are active in the field of handling in the Algerian market, and the process includes various branches of mechanics, electronics, plastics, rubber, iron, and ancillary services, such as studies, training, and engineering. However, the automotive field requires, according to the speaker, that these dealers be subject to restructuring to be able to engage in manufacturing car accessories and parts according to international standards.
In this context, Agsous talked about a government program to qualify companies active in the field of handling to be able to compete with global dealers in the production of spare parts, as it stipulates that new factories, which are supposed to contract with local handlers, “ensure quality standards with the best price and lowest cost for their produced vehicles to reach competitiveness in the automotive market”.
The spokesman explains that “The customer, who is the owner of a small or medium company in the field of handling, can benefit from the support of the authorities by depositing a file requesting assistance with the Competitiveness Promotion Fund at the Ministry of Industry and prepare a report on the company’s situation with the Studies Office, which reviews the condition of the equipment, production capacity and the status of the company, and the workers, and the organization of the institution. The assistance can reach 20% for equipment and financial investment and 80% for training, certification, and obtaining certificates,” as international factories and brands cannot be active in the automotive field with handlers who do not hold a certificate of conformity.
Regarding the dealers who are active today with “Stellantis Algeria”, whose number is 30, Agsous said that they had previously worked with car companies before their closure in 2019, such as “Renault” and also with public dealers such as “Citram” company that manages the “Algeria Tramway”, which has great experience in the field of vehicles and transportation, adding; “This company used to work with 20 Algerian handlers who are active today with Stellantis.”
The Chairman of the Handling Stock Exchange stressed the importance of increasing the number of active dealers in the field of handling who have obtained activity approval from 400 companies on average within 3 years, to be able to achieve an integration rate of up to 30% among local car producers under what is stipulated in the specifications procedure regulating the activity, while he reveals about a huge program at the stock exchange during 2024 to revive the sector, especially since the Algerian authorities want 2024 to be the year of the return of the automotive industry.
The Handling Stock Exchange program will include organizing study days, workshops, open doors, and meeting owners of automobile manufacturing projects in Algeria, establishing relations with them, and preparing a national card about potential producers, dealers, or small and medium enterprises capable of producing automobile parts and accessories.
