Algerian-American firm manufacturing farm tractors established in Algiers

Algérie Presse Service (APS) – August 16, 2012
ALGIERS – An Algerian-American firm specializing in the manufacture in Algeria of powerful farm tractors under the “Massey Ferguson” trademark was created today in Algiers and will begin production in January 2013.

Based in the city of Constantine, in eastern Algeria, the firm is the product of a partnership established between “Entreprise nationale des tracteurs agricoles” (ETRAG) and “Entreprise de commercialisation de matériel agricole” (PMAT), for the Algerian side, and AGCO/Ferguson industrial group, for the U.S. side.

Called “Algerian Tractors Company”, the firm will produce 500 tractors a year ranging from 55 hp to 160 hp, in its early stages of production, and should reach production levels of 5,000 tractors per year within four years. The company’s share-ownership pact and statutes were signed by the chief executive officers of ETRAG and PMAT, respectively Messrs. Abdelaziz Bendjama and Saleh Atouche, and by AGCO/Ferguson VP for Legal Affairs, Mr. Roger Batkin.

The signature ceremony was attended by Minister of Industry, SME, and Investment Promotion Mohamed Benmeradi.
With capital estimated at $14 million, the company is a joint venture where 36% and 15% of the capital are held by respectively ETRAG and PMAT, while AGCO International Holding BV (AIHBV) holds the remainder of 49% of the capital, in keeping with 51%-49% regulation requirements applicable to foreign investments in Algeria. Part of the water engines used to manufacture the tractors will be built by an Algerian firm – “Entreprise algérienne des moteurs” (EMO) -, thereby fulfilling an initial rate of 30% of national integration.

In a statement made to APS on the sidelines of the signature ceremony, Mr. Benmeradi said that establishing the firm, which involved total investment of 390 million euros, will contribute to the development of ETRAG’s platform in Constantine and to a “twofold increase in job creation” over the next few years.

Furthermore, Algerian Tractors Company will generate greater involvement of local mechanical subcontractors and will increase the national integration rate, particularly in future agricultural mechanization projects.

Responding to question relating to the company’s management, the minister said the American partner in the joint venture, already a world leader in that specialty, will be in charge of managing the company. The goal of the project is to meet national needs in terms of farm tractors, which are assessed at some 5,000 tractors per year, and to offset the current levels of national production, which stand at 2,500 vehicles a year.

Currently, ETRAG produces a single engine model with maximum power of 68 hp.