Algeria's national metal construction and boiler-making company, ENCC Spa, has signed a framework agreement with Spanish group Ferrovial to develop the manufacture of specialized railway freight wagons in Algeria. The partnership aims to produce wagons for transporting mining materials, particularly phosphate, a strategic resource for the Algerian economy. The agreement was signed on September 16, 2026, by ENCC Spa's President and General Director, Abdelhalim Arouch, and Ferrovial's General Director, Mounir Abbassi.

The agreement targets a national integration rate of over 70%, indicating a significant level of local production. This partnership is part of Algeria's efforts to support its national railway industry and valorize its strategic mining resources. The program focuses on manufacturing wagons dedicated to transporting mining materials, primarily phosphate. This will contribute to the development of a national specialized sector for railway freight wagons.

The cooperation between ENCC Spa and Ferrovial involves combining their expertise and industrial capacities to achieve the goal of high local integration. This collaboration aims to reduce Algeria's dependence on imports of specialized railway equipment. By increasing local production, Algeria strengthens its capacity to manufacture strategic equipment domestically. The partnership is expected to create added value and qualified jobs.

A key aspect of this agreement is the development of national technical skills and technology transfer. Ferrovial and ENCC Spa aim to establish a national specialized sector focused on manufacturing railway freight wagons. This sector will contribute to the country's industrial sovereignty in this specific domain. The partnership supports Algeria's strategy to develop complementary industrial sectors.

The agreement marks a significant step towards Algeria's industrial sovereignty. It promotes locally manufactured products and supports major projects in the mining and railway sectors. By developing a national industry for railway wagons, Algeria aims to reduce its reliance on imports and strengthen its economic resilience.

ENCC Spa's President and General Director, Abdelhalim Arouch, and Ferrovial's General Director, Mounir Abbassi, signed the agreement in the presence of Ferrovial's Chairman of the Board, Saïd Arabet. This event signifies the official start of the strategic industrial partnership between the two companies. The partnership is expected to have a positive impact on Algeria's economy and industry.

The manufacturing of wagons in Algeria is part of a broader strategy to develop the country's industrial sectors. This initiative aligns with Algeria's efforts to promote local production, create jobs, and reduce dependence on imports. The partnership between ENCC Spa and Ferrovial is a significant step towards achieving these goals.

Key points

  • Algeria aims to achieve over 70% local integration in wagon manufacturing.
  • The partnership between ENCC Spa and Ferrovial focuses on producing wagons for the mining industry.
  • The agreement supports Algeria's strategy to develop its industrial sectors and promote local production.

Share this story

Written by

SaharaWire Newsroom
SaharaWire

Reporting for SaharaWire from the Nairobi bureau.