The Algerian government has launched a new factory producing plastic components and accessories for the automotive industry in Tissemsilt. The facility, owned by the public holding company ACS, has a capacity to produce 251,000 pieces per year and can equip nearly 200,000 vehicles. The first phase of production will have an integration rate of 40%, with plans to increase it to 70% in the future. The factory was previously owned by Cima Motors, which was seized as part of an anti-corruption investigation.
The factory, now operational, will not only supply the local automotive industry but also produce components and accessories for other sectors, including household appliances, cable manufacturing, medical equipment, and packaging materials. According to the Algerian Press Service, General Plastic Injection will diversify its production to meet the needs of various industries. This move is part of Algeria's efforts to develop its manufacturing sector and reduce reliance on imports.
Prime Minister Sifi Ghrieb attended the inauguration ceremony and emphasized the importance of the project. He stated that everyone involved worked tirelessly to launch the factory, which was in a deplorable state just six months ago. The Prime Minister set a deadline for the end of the year, requiring all authorized automotive manufacturers in Algeria to produce their plastic parts in this factory, rather than importing them.
The government's goal is to stop importing plastic parts that can be manufactured locally. The Prime Minister announced that no plastic parts for vehicle assembly will be imported if they can be produced in this factory. This decision also applies to car bodies manufactured in Batna, where an embossing factory was launched in April. The move aims to boost the domestic automotive industry and promote self-sufficiency.
The ACS holding company, which owns the factory, groups public enterprises from the chemical industry. The factory's recovery from Cima Motors was part of a broader anti-corruption effort, which led to the conviction of the former owner, Mahieddine Tahkout, to a lengthy prison sentence. The government's efforts to revive and develop strategic sectors, such as the automotive industry, are ongoing.
Algeria's automotive industry has been receiving attention from the government, with various initiatives aimed at promoting local production and reducing imports. The new factory is expected to play a significant role in this endeavor, contributing to the country's economic growth and development. The project aligns with the government's vision to strengthen the industrial sector and enhance self-sufficiency.
With this new factory, Algeria takes a step forward in its efforts to localize the production of automotive components. The government aims to make the country a hub for the manufacturing of vehicle parts, reducing reliance on imports and creating jobs. As the industry continues to grow, it is expected to have a positive impact on the country's economy and trade balance.
Key points
- Algeria launches a new factory producing 251,000 plastic components per year for the automotive industry, aiming to equip 200,000 vehicles.
- The factory, owned by ACS, will also produce components for other sectors, including household appliances and medical equipment.
- The government aims to stop importing plastic parts that can be manufactured locally, with a deadline set for the end of the year.
