Germany Negotiates To Snatch Algeria's Spare Part Market From French Companies

Works of the Algerian-German Business Forum is organized in Algeria Al Aurassi Hotel, here on Monday, starting at nine am, in the presence of dozens of businessmen from the two countries, and headed by the Prime Minister, Abdelmalek Sellal, and the German Chancellor, Angela Merkel, on the sidelines of the works of the mixed Algerian-German Committee on February 21 and 22.

This comes at a time when Germany is working hard to nail the largest share of the market for handling and spare parts and mechanics in Algeria, which officially will stop the importation of cars and spare parts in 2020, according to the industrial scheme, which is on the table of Industry and Mines Ministry, which counts today 50 handling companies in the automotive field, and 4 factories for production, and which is seeking to reach half a million vehicles that are manufactured in Algeria.

Algerian-German Business Forum will discuss many sectors like mechanics and handling, because 2017 in Algeria would be the year of handling primarily, more than a year of manufacturing, in addition to the production of spare parts, electronics and electrical appliances, Petrochemistry, industrial chemistry, construction, food industry and renewable energies, as the businessmen of the two countries will study the B2B work sessions, and the ways and possibilities for the lifting of trade exchanges between the two countries, which noticed a relative stagnation in the recent years.

Chairman of the Algerian Chamber of Commerce and Industry, Al Eid Ben Amer told Echorouk: “Algerian market counts today more than 100 German companies that are active in various fields, led by mechanics, cleaning materials, chemistry, petrochamistry and construction, and they are traders and economists who have proven their success, and have registered their presence in the global market like “Henkel” and “Lindt”, at a time when Algeria remains today in need to the German expertise and technology, and not to financing, by virtue of what exists in Algeria currently of funds in dinars and foreign currency, which is able to embody larger projects, but Germany, in contrast, will be binding on its branches for the training of the Algerian employees, and contributing to the transfer of German technology to the factories and production units in Algeria”.

“One of the most important areas that cooperation can be consolidated through it between Algeria and Germany is the mechanical handling industry through the manufacture of spare parts locally, which is a file that will be opened and dealt with in detail during Merkel’s visit”.

“On the sidelines of the Algerian-German Joint Committee and after the signing of an agreement between Volkswagen and Sovak to accomplish Tiaret factory, it will sign other agreements for the manufacture of spare parts, as a German factory for the installation of cars was also created and Germans will be obliged to manufacture spare parts as well, and they will agreed upon that during Merkel’s visit”.

For his part, vice chairman of the Chamber of Commerce and Industry, Riad Amor, predicted the signing of a protocol agreement between Algeria and Germany at the conclusion of the works of the Joint Committee between the two countries, for the production of spare parts locally to supply factories in Algeria, as there are 4 factories in this field and is expected to rise further by the year 2019, with knowing that the French and the Turks dominate the current production of spare parts in Algeria.

Algerian market counts 450 French companies, 270 Italian companies and slightly more than 100 German companies.