Algeria, US establish joint venture to build tractors
Date: 16/08/2012      Time: 11:44:00 PM
 
An Algerian-American company for manufacturing powerful agricultural tractors under the brand "Massey Ferguson" was established in Constantine, East of Algeria, on Thursday, and will begin production next January. The agreement was signed by CEO of the National Company of Agricultural Tractors (ETRAG) Abdelaziz Bendjama and CEO of the company for trading in agricultural materials (PMAT) Saleh Atouche, from the Algerian side, and the Vice-president of Legal Affairs of the Industrial Group AGCO/Ferguson Roger Batkin, from the US side. The signing ceremony was attended by Algerian Minister of industry, SME and Investment Promotion Mohamed Benmeradi. The capital of the mixed company, which is estimated at USD 14 million, is held at 36 percent by ETRAG, at 15 percent by PMAT and at 49 percent by AGCO international holding BV (AIHBV), and in accordance with the 51-49 rule governing foreign investment in Algeria. Established in Constantine (East of Algeria), the company is the result of a partnership between the National Company of agricultural tractors (ETRAG) and the Company for trading the agricultural material (PMAT) for the Algerian side, and the industrial Group AGCO-Ferguson for the American side. The name of the new company will be "Algerian Tractors Company", the company will produce during its beginning 500 tractors per year with a power from 55 to 160 horses, to reach 5,000 vehicles/year in four years. A portion of water engines used in the manufacture of tractors will be provided by the Algerian Company of Engines (EMO), which is the first national integration rate of 30 per cent.