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Algeria’s new specifications saying foreign investors in car industry will not be obliged to join local partner

Released on:2020-02-20 Views:

On February 18, Algeria Press Service, Algeria's official news agency, released a report titled Car industry: foreign investors will not be obliged to join local partner. The excerpts of the full text are as follows.

 

Ferhat Aït Ali Braham, Minister of Industry and Mines of Algeria, said on Tuesday in Algiers that the new specifications governing the car industry in Algeria will not oblige foreign investors to join a local partner but will impose a financial and technological contribution.

 

When invited to the El Moudjahid Forum, the Minister said that the specifications to be established by the Ministry of Industry and Mines will impose requirements on foreign investors, for example, increasing investment through "large-scale investment if necessary".

 

The Minister explained, "We will not oblige foreign investors to join a local partner but will impose a financial and technological contribution." He added that "the government will also work to consider the incorporation of the existing operators of the Algerian automobile industry into the provisions of the new specifications".

 

The Minister said the new specifications would require the manufacture of certain parts (such as the body), at least initially to ensure that the body and chassis are made in Algeria.

 

He insisted on the forum that "the government will seriously establish an automobile industry in Algeria".

 

In addition, the Minister referred to the issue of imported vehicles used for less than three years and introduced the work of a working group composed of members from the Ministry of Industry, the Ministry of Trade and the Ministry of Finance. He said the working group was continuing its work to enable the import of such vehicles to be started effectively.

 

However, with regard to the import of diesel vehicles, he pointed out a technical problem that "The diesel used in Europe is different from that in Algeria".

 

Turning to the issue of price, he stressed, "Citizens must be aware that there is no significant difference between the price of a vehicle used less than three years and that of a new car, especially in view of the value of the Dinar in a parallel market, which has not yet included tariffs".

 

He also referred to the decision to include the National Company of Industrial Vehicles (SNVI) in the military industry and made it clear that the move aimed to provide the military industry with necessary equipment while ensuring the operation of the enterprise, so that the state would not have to invest in the acquisition of new equipment.

 

With regard to the El Hadjar Steel Complex, the Minister did not rule out the possibility of including it in the military industry.

 

He said, "We need discipline. We have created profit-making industries. The military industry is the only industry where labor discipline can be imposed."

 

Source: Economic and Commercial Counsellor's Office of the Chinese Embassy in Algeria