Joint Venture to Contribute to Algeria’s High-Value Manufacturing Sector
Today, oil and gas comprise 98% of Algeria’s exports. But Algeria is aware that with its educated workforce and location close to Europe, the Middle East and Africa, it has tremendous potential as a manufacturing exporter. Building the country’s manufacturing base also can help boost youth employment and improve economic diversification.
GE is working with longtime partner Sonatrach to further develop the manufacturing and industrial sector in Algeria. The two companies have signed a memorandum of understanding to establish a new joint venture company to develop manufacturing capabilities that will help reduce production costs and support the growth of the Algerian industrial sector.
The MoU outlines a project that would manufacture, assemble, test and service upstream drilling, well-production, measurement and control and downstream equipment for the Algerian oil and gas market, and offer specialized training programs for Algerian workers.
Rami Qasem, President and CEO of GE Oil & Gas MENAT, points out that the products manufactured as a result of this project “would have to meet the stringent quality and specification demands of Algeria’s upstream and downstream energy sector, thereby creating high-quality jobs for Algerians and potentially boosting high-value-added exports.”
This new joint venture, which will help reduce production costs, represents another milestone for GE in the localization of manufacturing services and employment in Algeria, and underlines the mandate of the company to serve the country oil and gas market, help meet the rising demand for power, and improve the nation’s industrial network.
This agreement follows less than six months after the grounbreaking on another major joint venture manufacturing plant in Algeria with another long-time GE partner. In that project, GE is working with Sonelgaz to construct one of the world’s largest gas turbine manufacturing plants.
GE’s investment and contribution to Algeria’s manufacturing sector extends back more than 20 years. In 1993, GE joined hands with Sonatrach and Sonelgaz to establish the joint venture ALGESCO. Expanded in 2010 to a second location, ALGESCO now is one of the largest-of-its-kind GE turbo-machinery equipment service centers in the world. The facility supports the continued growth of Algeria’s oil and gas and power generation sectors while promoting technology innovation — just as the newly announced facility will as well.
More than 300 ALGESCO engineers have been trained in Algeria by GE, with the goal to increase that number significantly over the coming years. GE also has partnered with Ecole Nationale Polytechnique, Sonatrach and Sonelgaz to provide advanced training programs.
GE is also a significant partner in the Hamma Desalination Plant, which provides potable water to nearly 25% of the population of Algiers. This cooperation and investment represent GE’s long-term commitment to the economy and people of Algeria.