Handling Mechanical Companies Can Feed State Treasury With An Estimated $ 4 Billion Dollars

The Chairman of the Conglomerate of precise mechanical institutions, Adel Bensaci, stated that the empowerment and encouragement of mechanical handling institutions could lead to a 50 percent reduction in the import bill of the spare parts’ sector and the provision of more than four billion dollars to the state treasury.

The imported spare parts in the sector cost annually more than 8 billion dollars, he recalled.

Mr Bensaci who was the guest of a morning interview program of third channel of the National Radio on Sunday said that the control of the percentage of national integration of the Algerian handling companies, will contribute to the rejuvenation of the Algerian industrial activity, and maintain national sovereignty, and independence from dependency abroad, especially in the field of spare parts.

He added that the Algerian handling companies in this area could lessen the import bill by half, which is currently close to 8 billion dollars, pointing out that the handling companies are able to break into the mechanical and conversion industries, in addition to the food industries, as well as energy production and water management in Algeria.

He also underscored that of the approximately 900 operators operating in Algeria, 10 percent of which are small and medium sized enterprises, a percentage he considered as very weak compared to neighboring countries, which reached the proportion of small and medium-sized companies up to 28 percent.

Mr Adel Bensaci further called on the government to encourage the creation of brand-new companies and expand their activities, while reducing the tax rate, which is currently close to 65 percent, stressing this hurdle drive Algerians to refrain from establishing such institutions and thus prevent the absorption of activities at the level of the informal market.