German carmaker “Volkswagen†eager to invest in Algeria
The Algerian minister of small and medium-sized companies and the promotion of investment Mohammed BenMerradi has indicated that the Algerian authorities are determined to enhance the current investment climate through a series of reforms designed to develop the industrial sector in the country.
- The minister has revealed a pharaoh budget as part of the five- year plan designed to cerate 200 thousand small and medium-sized companies and the rehabilitation of 20 thousand others, in a bid to boost their productivity. The gross total of the budget is estimated at 3billion Euros.
- Talking at “ Al – Moudjahed Forum”, Mohammed Ben Merradi has indicated that the German carmaker “ Volkswagen” is seriously envisaging to invest in Algeria; he has asserted that “ Volkswagen” is insisting on starting the negotiations with the Algerian authorities, noting that this is second foreign carmaker that openly expressed its interest in the Algerian market.
- He added, in this respect, that the French carmaker “ Renault” has presented a better suggestions to the Algerian authorities six months ago, noting that this operator grew comprehensive to the Algerian position.
- The minister has indicated that the Algerian government has set up a committee entrusted with the follow up of the partnership agreements in car industry; the committee comprises managers in various ministries including industry and engineers in mechanics whose role consists in carry on negotiations with foreign partners in the sector.
- As to the French carmaker “Renault” , M Benmerradi has indicated that the operator expressed the will to bring the brand without investing in the capital at the beginning; but they came back with a more serious suggestions notably, in the production sector.
- The minister has further added that Renault wanted to produce 50 thousand cars per year but reviewed the number to 75 thousand units including four types of cars. The first stage of the partnership consists in the creation of an assembly plant, followed by a next phase that includes a joint venture at a level of 40% for the Algerian industry in the production process over four years.
- Renault has fixed the year 2012 for the supply of the Algeria market with its first cars. Should the negotiations succeed; the first assembly plan will be erected on the locations of the present Algerian company for industrial vehicles.