Aps : Sunday, 25 November 2018
TIZI OUZOU-Algerian limited liability Company (LLC) LD Azouaou and Indian Group Mahindra Mahindra LTD sealed an agreement on Sunday in Tizi-Ouzou to create a joint venture to assemble farm tractors.
LD Azouaou CEO, Lahlou Azouaou and Mahindra’s Head of International Operations, Arvind Mathew signed the agreement at the headquarters of LD Azouaou to assemble agricultural tractors at the industrial zone of Oued Aissi.
In accordance with this agreement, the Indian partner will hold a minority stake while LD Azouaou will retain the majority stake.
Speaking on this occasion, Azouaou stressed that this joint-company will enhance Mahindra’s presence in Algeria. It will also allow LD Azouaou to move towards export and enter some markets with effectiveness, notably in Africa and Europe.
For his part, Arvind, recalled that the company he represents sold more than 330,000 tractors per year worldwide.
In Algeria, where it has been present since 2010, the same company has a total of 32 contact points for commercial operations, after-sales service and 3200 customers, he said.
Speaking at the ceremony, the local Director of Industry and Mines (DIM), Moula Hamitouche, described the project as an “intelligent” tractor assembly and agricultural equipment manufacturing unit based on training and innovation.
The company has an annual production capacity of 3000 tractors and 2700 units of equipment per year at the start of its activity, said Hamitouche.
The company, whose implementation cost hit DZD 2.5 billion, will create 225 direct jobs at the start of production.