By Shakir Husain
HYDERABAD, India: Malaysian conglomerate, DRB-Hicom Bhd, is studying the setting up of a vehicle assembly plant in Algeria as it looks to North Africa’s growing automobile market for overseas expansion, according to Malaysia’s Ambassador to Algeria, Datuk Rizany Irwan Muhamad Mazlan.
This proposed venture supports Malaysia’s efforts to develop industrial cooperation with Algeria and aligns with the Algerian Government’s local manufacturing drive, he told BERNAMA.
DRB-Hicom top executives, including from the group’s brands, Proton and Modenas, recently held talks with Algerian officials about their planned business projects.
“The visit’s main purpose was to conduct market assessments, explore avenues for industrial cooperation, and gain insights into Algeria’s regulatory and tax frameworks for the industry.
“DRB-Hicom has agreed to undertake a feasibility study for a local assembly facility, and Proton is willing to support technology transfer and skill training for Algerian personnel,” he said.
Algerian Ministry of Industry’s Secretary-General, Kheireddine Benaissa, highlighted Algeria’s pro-business policies during a meeting with the Malaysian delegation.
He explained that Algeria offers a 10-year tax break during project implementation and a five-year corporate profit tax exemption post-operation tied to a 30 per cent local integration rate within five years.
Algerian Investment Promotion Agency’s Director-General, Omar Rekkache, welcomed the potential entry of Proton cars and Modenas motorcycles into his country and promised to support the Malaysian companies throughout the investment process, Rizany Irwan said.
“Algeria’s focus on domestic automobile manufacturing presents an exceptional opportunity for the Malaysian brands.
“They will also gain favourable access to regional markets via Algeria’s free trade agreements,” he said.
Among DRB-Hicom’s private-sector engagements, the Algerian vehicle distribution company, Sodivem, expressed interest in a joint venture with Modenas.
Additionally, LaBelle Group and DRB-Hicom discussed partnership ideas for the proposed Modenas motorcycle project to serve the domestic market and tap into West African export corridors.
LaBelle executives are expected to visit the Modenas plant in Malaysia soon.
Automotive Plant Algeria, a major industry player, and the Malaysian executives also discussed a proposal to use the Algerian company’s existing infrastructure in northwest Oran province for Proton’s local assembly plans. – BERNAMA
