BY: Dr. Hana Saada
ALGIERS- It appears that positive developments are on the horizon for Renault and Volvo Trucks, as they await the green light to resume their industrial activities. Renault Algeria Production in Tafraoui began operations in November 2014, while Renault Trucks/Volvo Trucks (Soprovi) in Meftah started production in July 2016. These developments come to light following statements made by the Minister of Industry and Pharmaceutical Production, Ali Aoun, in an interview with Indjazat magazine.
According to Minister Aoun, local suppliers have already been selected by Fiat, Renault, and Soprovi, indicating progress in the automotive sector. In response to a question about initiatives to boost the Algerian automotive sector and enhance industrial integration, Minister Aoun emphasized Algeria’s significant potential in this strategic industrial sector. He outlined a strategic vision aiming for a minimum 30% integration rate within five years, in line with Executive Decree No. 22-384.
Moreover, the minister highlighted investment opportunities in subsectors related to subcontracting and export to foreign automotive factories. He identified various products for subcontracting, including seats, wiring, carpets, plastic parts, tires, rubber parts, batteries, paint, glass, upholstery, and machined parts.
Hundreds of local operators are positioning themselves to become automotive industry suppliers, with around twenty capable of supplying the automotive sector. Some have even secured supply contracts with automotive manufacturers after homologation processes, notably Renault, Fiat, and Soprovi.
Renault and Soprovi’s Potential Resumption:
In October 2022, Oran’s Wali, Saïd Sayoud, hinted at Renault Algeria Production’s gradual resumption in Oued Tlélat, pending conditions set by the Algerian state. Madar Holding acquired a 34% stake in RAP in May 2022, following the transfer of SNVI shares to the Ministry of Defense. Additionally, AB Volvo acquired the Algerian partner’s shares in Soprovi in 2023 to produce Renault Trucks and Volvo trucks in Meftah.
Advantages for Subcontractors:
To strengthen subcontracting, Minister Aoun revealed plans to structure and regulate subcontracting policies through regulatory and organizational measures. The Ministry of Industry has adopted a strategy to support subcontractors, aiming to create a subcontracting base, enhance national integration, and boost export potential.
Incentives have been introduced to encourage subcontracting activity, including preferential treatment and exemptions from customs duties and VAT for components acquired by subcontractors. Furthermore, four Subcontracting and Partnership Exchanges have been established to support subcontracting companies and facilitate business connections between suppliers and buyers.
Translated from:
https://lalgerieaujourdhui.dz/usines-de-tafraoui-les-premices-dun-retour-de-renault/
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