Industrial subcontracting: Five conventions in favor of national integration inked

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ALGIERS- Five agreements have been signed in 2018 between the Algerian Stock Exchange of Subcontracting and Partnership (BASTP) and public industrial groups to boost SMEs access to the customers, APS learnt Thursday at the 5th National Show on Subcontracting “SANIST-2019”.

These framework agreements concern respectively the Algerian Cement Industrial Group (Gica), the Public Mechanics Group (AGM), the Elec El Djazair Group, the IMETAL Group, and the National Company of Industrial Vehicles (SNVI), specified the secretary general of BASTP, Ramdane Toukal.

The aim is to provide these contractors, at their request, with lists of local subcontractors that can meet their needs for locally manufactured spare parts and other industrial supplies.

Mr Toukal has also announced that other framework agreements “are being drawn up” with Sonatrach and Sonelgaz groups respectively.

Regarding the strategy of BASTP, bringing together a thousand subcontractors within it, it aims to facilitate access to its members to the “priority” activities carried out by the principals (public and private), especially those invested in the mechanical industry and energy.

According to him, this strategy will make it possible to create synergy between the network of national subcontractors and the principals, strengthen the competitiveness of local subcontracting, increase the national integration rate and reduce the cost of their finished products.

It mainly allows the identification of imported industrial parts that can be manufactured in Algeria or are already in anonymity.

Also meeting on the sidelines of the fair, a technical advisor to BASTP, Chaâbane Abderezak, said that within a few months of implementation, these agreements have allowed several national subcontractors to win contracts with public groups , citing the GICA Group which has “introduced several Algerian SMEs into its chain of suppliers of industrial parts, necessary for its cement manufacturing facilities”.

Believing that national subcontracting was gaining more and more confidence from the principals, “Abderezak, who is also the boss of an industrial subcontracting company, said that national SMEs are imposing themselves by proposing “reliable” and “competitive” products, to those of import.

Citing the example of the mechanical industry, Mr. Abderezak noted that major car manufacturers based in Algeria had started to use Algerian subcontractors for the supply of inputs.

Negotiations are currently underway between Algerian vehicle manufacturers and Algerian SMEs for the supply of products such as batteries, windshields and tailpipes, explaining that the negotiating process goes through several stages before reaching the signing of contracts.

 The military industry, locomotive of the national subcontracting

In addition, Mr. Abderezak referred to the projects launched by the Central Directorate of Equipment under the Department of National Defense , including the manufacture and assembly of light and heavy vehicles.

According to him, several national subcontractors have managed to win contracts with the MDN vehicle manufacturing companies.

Present at “SANIST-2019”, the Central Directorate of Equipment under the control of MDN was represented at this event by several companies operating in the mechanical industry.

These include the Algerian Light Armored Vehicles Manufacturing Company (Nimr Algérie Spa), the Algerian Special Vehicles Manufacturing Company (Rheinmetall Algérie Spa), the Algerian Corporation for the Production of Mercedes-Benz Trucks (SAPPL- MB Spa) of Rouiba (Algiers), as well as the Algerian company for the manufacture of Mercedes-Benz vehicles (SAFAV-MB) of Tiaret.

Under the supervision of the MDN, the Mechanical Engineering Promotion Group (GPIM), headquartered in Constantine and whose main missions are to support the national mechanical industry, is to design, develop and manufacture vehicles and engines intended, in particular, for the needs of the national defense and ensuring the industrial surveillance of the activities related to the manufacture of engines and vehicles, was also present at SANIST-2019 through several stands.

Asked by the APS about the existence of a possible cooperation between their group and national subcontractors, the GPIM representative, Captain Yacine Hamiche, said that MDN is using several Algerian companies to cover its needs in terms of spare parts.

As a reminder, about 60 national companies took part in the 5th edition of the National Reverse Exhibition of Subcontracting (SANIST-2019), held from 11 to 14 March.

 

 

APS

 

 

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