Algeria- Automotive Industry: Over a Hundred Local Operators Positioning to Supply Components
BY: Dr. Hana Saada
ALGIERS- In an interview with the magazine “Indjazat,” Ali Aoun, Minister of Industry and Pharmaceutical Production, revealed that over a hundred local operators are positioning themselves in the subcontracting sector to become suppliers of components for the automotive industry across various fields of activity.
Minister Aoun emphasized that the development of the automotive industry presents investment opportunities in subcontracting and exportation to foreign automotive factories.
He stated, “Currently, hundreds of local operators are positioning themselves to become suppliers for the automotive industries in various fields of activity, with around twenty capable of producing for the automotive sector. Some have even secured service-supply contracts with automotive manufacturers after a phase of accompaniment and homologation.”
Among these manufacturers, he mentioned Renault, Fiat, and Soprovi (which manufactures trucks under the Volvo brand), noting that the Ministry of Industry and Pharmaceutical Production has adopted a strategy to support subcontractors.
This support strategy aims primarily at “creating a subcontracting base, which is essential to ensure sustainable development for industrial sectors, strengthening the integration of national capacities through the valorization of local inputs to ensure import substitution and increase export potential.”
Subcontracting involves various components and products, including seats, wiring, sealing mats, sealing joints, plastic parts, pneumatic components, rubber parts, batteries, paint and solvents, glazing, upholstery, cable spindles, and machined parts.
Minister Aoun assured that incentive measures have been implemented to encourage subcontracting activities, granting preferential treatment to manufacturers and exempting them from customs duties and VAT on components and raw materials imported or locally acquired by subcontractors for their activities.
Additionally, the creation of four subcontracting and partnership exchanges has been agreed upon. These exchanges aim to support subcontracting companies and facilitate business connections between clients and suppliers.
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