✏️ BY: Dr. Hana Saada
Algiers, Algeria | July 10th, 2024 — Global home appliance leader Haier has officially entered the Algerian market through a strategic partnership with SPA Samha Home Appliance, a subsidiary of the Cevital Group. Under this agreement, Haier will begin producing a wide range of home appliances at the Samha industrial complex in Guedjel, Sétif, where Brandt products are also manufactured.
A Modern Industrial Complex with Vast Capabilities
The state-of-the-art Guedjel complex, inaugurated in 2016, represents a €500 million investment by Cevital. Equipped with 94 plastic injection machines, metal stamping devices, motherboards printing units, washing machine motor manufacturing units (in partnership with Brazilian group WEG), and aluminum waste transformation units, the complex meets Haier’s stringent production standards.
For example, the refrigerator production unit, which spans five times the size of a football field, includes four production lines with a combined capacity of 1 million units per year across two shifts. The overall capacity of the Guedjel complex is 5 million appliances per year across all categories and brands, with potential to increase to 7 million units with minimal additional investment, according to Tahar Bennadji, CEO of Cevital’s home appliance division.
Initial and Future Product Lines
Haier will commence production at the Sétif complex by the end of the year, initially focusing on five product lines: washing machines, dishwashers, refrigerators, televisions, and air conditioners. In the second phase, production will expand to include cooking appliances such as cooktops, stoves, and ovens.
Targeting Local and International Markets
The Samha-Haier partnership aims to not only supply the Algerian market but also to export to Africa, the MENA region, and Europe. “The Algerian home appliance market has immense potential and is a key focus for our group. Haier provides concrete solutions to the needs of Algerian consumers seeking premium, high-quality products with superior design and advanced technology,” stated Li Dapeng, Haier’s Director General for the MENA region.
Samir Boulaiche, CEO of Samha Home Appliance, emphasized that this partnership represents a major milestone for Samha, enabling the company to expand, grow, and develop a robust industry with significant technology transfer and local integration, while energizing the national market and targeting regional markets.
Technological Innovation and Global Ambitions
With production units already operating at full capacity in Egypt and Turkey, Haier’s launch in Sétif is poised to meet high global demand. The company plans to produce air conditioners capable of withstanding temperatures up to 68°C, targeting exports to Africa and the MENA region, as well as heating and cooling devices popular in Europe.
A Synergistic Partnership
The collaboration between Samha and Haier extends beyond production, aiming to leverage digital transformation, new technologies, and artificial intelligence to meet evolving consumer expectations. The partnership focuses on delivering an optimal user experience, inspiring lifestyles, and smart homes through connected IoT products.
Harnessing Algeria’s Economic Potential
Samha and Haier aim to capitalize on the new investment law, Algeria’s strategic geographic position, bilateral and multilateral agreements (such as the association agreement with the EU and the African Continental Free Trade Area), and various government incentives promoting exports and “Made in Algeria” products. The integration levels at the Guedjel complex have already reached 70-80% for several products, and Samha plans to further increase these levels by leveraging investments from other Algerian enterprises.
The partnership promises to invigorate the Algerian home appliance market, establish a strong and modern industry, and enhance the international expansion and visibility of both Samha and Haier.
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