Speaking during the Parliamentary day on military industry in Algeria at the People’s National Army (ANP), in the presence of executives of the National Defence Ministry and Chairman of the Lower House Said Bouhadja, Haddouche said that “FDIs in partnership projects in the military industry hit one billion dollar,” stressing the key economic role of domestic military industries.
In his speech entitled “The economic aspect of military industries,” Lieutenant Colonel Haddouche said the military industry allowed addressing the crisis witnessed by some domestic industrial sectors, including textile, through partnership between the two sectors as well the training and employment of the population of the regions housing companies and plants.
Haddouche recalled the industrial companies created in various fields with a foreign partner and national companies according to the rule 51/49, like the “Mercedes Benz” Vehicle Manufacturing Company incepted on July 2012, which targets 2,000 Mercedes G Class vehicles with a 30% integration rate after production launch.
He also mentioned the Algerian Mercedes Benz Heavy Truck Manufacturing Company inaugurated in 2012, which also aims to manufacture 15,000 trucks and 15,000 buses per year with a minimum integration rate of 30% for the first five years.
Moreover, the same official recalled the creation of the Algerian Cars Manufacturing Company with a view to producing 120 units per year, the Algerian Armored Vehicle Manufacturing Company (NIMR) and the Algerian Engine Manufacturing Company (SAFMMA), which seeks to produce 25,000 units with a minimum integration rate of 50% in the first five year after production launch.
Lieutenant Colonel Haddouche also referred to the Algerian Company for Electronic Systems Manufacturing (SCAFSE) and the Caracal Pistols and Small Arms Manufacturing Company in partnership with Emirati Company Caracal.
The same official recalled the creation of the Algerian Company for Explosives Manufacturing, a Helicopter Manufacturing Plant and the Algerian Mercedez-Benz vehicles Distribution Company.
Furthermore, Lieutenant Colonel Haddouche mentioned the Algerian Industrial and Technical Textiles Company (EATIT), a combination of seven textile production groups. The National Defence Ministry contributed by 60% to the company’s share capital through its Clothing and Sleeping Items Company.
Military industry’s turnover expected to hit DZD100 billion in 2019
For his part, Colonel Karoui underlined the importance of military industry in meeting the needs of the domestic market in terms of trucks, cars and buses manufactured in Algeria, stressing that the turnover of the military industry is expected to reach DZD100 billion in 2019.
The sector banks on “a turnover worth DZD100 billion and intends to create 30,000 jobs, 10 companies, 12 joint-stock companies and 40 plants.”
Investment in the military industry is part of the implementation of the economic recovery programme launched by President of the Republic Abdelaziz Bouteflika, affirmed Karoui.
Recalling that the military industry covers several areas like mechanics, electricity, chemical industries and fabrics, Colonel Karoui assured that these products were not intended only for military use but also for para-military use or by civilians.
By 2019, the sector is expected to meet the needs of the domestic market in terms of trucks, said Karoui.