VMS Industry Leads Algeria’s Manufacturing Revolution: Setting Ambitious Goals for National Growth

BY: Dr. Hana Saada

Algiers, Algeria | November 26th, 2024 —  In a bold move reflecting Algeria’s ambition to shift from reliance on imports to becoming a major manufacturing hub, VMS Industry has become a trailblazer in the nation’s drive towards industrial development. Since 2015, the company has undergone a remarkable transformation from being a mere importer of motorcycles to a leader in the manufacturing sector. This shift is in line with the broader economic vision set forth by President Abdelmadjid Tebboune, who has championed a strategic shift in Algeria’s economic policy, focusing on self-sufficiency, industrialization, and expanding non-oil exports.

The transformation of VMS Industry stands as a testament to the successful implementation of Algeria’s ambitious economic goals, which aim to diversify the economy and reduce dependency on oil and gas exports. This strategy, which has been pivotal in the country’s recent economic reforms, is now being actualized by companies like VMS, which have embraced local manufacturing and technological innovation as core pillars of their operations.

In 2020, VMS Industry took its first steps toward industrialization by transitioning from simple assembly to full-scale manufacturing. By 2024, the company had achieved extraordinary production figures, with over 40,000 units being manufactured annually across a range of vehicles, including two-wheeled motorcycles, three-wheelers, and four-wheelers. These vehicles are produced using 100% locally sourced materials, a move that not only strengthens the national supply chain but also contributes to preserving foreign currency reserves and reducing the country’s reliance on imports.

At the heart of VMS’s success is its focus on the development of Algeria’s mechanical industry, particularly motorcycle manufacturing. The company’s manufacturing process involves local raw materials such as steel and plastic, which are transformed into high-quality products through a series of carefully planned stages. These include cutting, welding, painting, and final assembly, ensuring that each motorcycle meets international standards for safety and performance.

Beyond production, VMS Industry has played an essential role in job creation and skills development in Algeria. The company has partnered with local universities and vocational training institutes to recruit young Algerians, including those with special needs, into the workforce. Through these partnerships, VMS has created thousands of direct and indirect jobs in sectors ranging from transportation and logistics to sales and marketing. This commitment to inclusivity and social responsibility has further solidified VMS’s role as a key player in Algeria’s economic resurgence.

Furthermore, VMS Industry’s dedication to research and development (R&D) underscores its commitment to fostering innovation within Algeria’s industrial landscape. The company has established a dedicated R&D division that focuses on improving production processes, enhancing product quality, and developing new technologies that align with global trends. This investment in R&D is essential for ensuring that Algeria remains competitive on the international stage.

Looking forward, VMS Industry has set its sights on expanding into African markets, with plans to export its products to neighboring countries. This expansion aligns with Algeria’s broader goal of becoming a regional manufacturing leader and positioning its industries as competitive players in the global economy. By exporting to Africa, VMS aims to contribute to the development of the continent’s manufacturing capabilities while reinforcing Algeria’s role as an economic powerhouse in North Africa.

VMS Industry’s success story is a prime example of how strategic planning, commitment to innovation, and a focus on national capabilities can lead to significant economic transformation. The company’s rise mirrors Algeria’s broader vision of building a sustainable, competitive, and diversified economy. With continued investment in technology, workforce development, and international expansion, VMS Industry is poised to remain a cornerstone of Algeria’s manufacturing sector for years to come, while contributing to the broader goal of economic diversification and sustainable development.

This model of industrial success, driven by a well-executed national strategy, is a beacon of hope for Algeria’s future, as the country moves closer to achieving its long-term economic goals under the leadership of President Tebboune. The story of VMS Industry is a testament to the power of innovation, local expertise, and government support in shaping a prosperous and resilient economy for the future.

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