APS : Tuesday, 07 June 2016
BATNA- The first Hyundai truck assembled at Global Motors Industries plant was released Tuesday in Batna in the presence of Minister of Industry and Mining Abdeslam Bouchouareb and South Korea ambassador to Algeria Park Sang-jin, and Prefect Mohamed Salamani.
The plant based in the industrial zone of Batna will assemble by late 2016 some 15,000 vehicles and plans to raise its annual capacity to 22,000 units in 2020, according to the explanations of the officials of this private investment result of Algerian-South Korea partnership.
This plant mobilized a DZD7 billion investment with a capacity of an annual production of 3,000 trucks, 200 buses, 50 coaches, 250 tractors and 250 engines.
According to the officials of this industrial plant, the factory which currently employs 450 workers ambitions to achieve, within five years, a 40% integration rate through local subcontracting and bring its workforce up to 2,000 employees.
South Korea ambassador to Algeria hoped that this cooperation will progress “beyond the assembly to move towards the manufacturing with the production of 100% Algerian spare parts,” saying that this investment supports the Algerian economy and local development.
For the Minister of Industry and Mining, this project, launched in parallel with others, is part of the diversification of the national economy and allows to create a basis for a mechanic industry, stressing that the assembly is a first necessary stage.
Bouchouareb stressed on encouraging subcontracting to gradually increase the integration rate of locally manufactured parts.
On a question on the reduction of imported cars quotas, the Minister urged car dealers to invest in subcontracting so to become manufacturers, considering that the Complementary Finance Law 2015 and the Finance Act 2016 give significant benefits to such initiatives.
Algeria will not remain an eternal car importing country since it has huge potentials and ambitions to launch a national car industry