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FINANCIAL NEWS
Aabar to own 24.5% stake in Algeria auto plant
18 Feb 2007
(MENAFN) A statement issued by Aabar Investments said that the Abu Dhabi-based firm will own a minority stake in an auto assembling plant in Algeria, Khaleej Times reported.
Aabar’s board of directors has approved a 24.5 percent stake in a joint venture with the government of Algeria and Ferrostaal, to set up the first of three factories in Algeria.
Last year, Aabar signed a Memorandum of Understanding (MoU) with the government of Algeria and Germany’s auto giants Ferrostaal, Rheinmetall, Daimler, Deutz, and MTU.
This auto assembling plant is the first step in executing last year’s MoU. Up to 10,000 cars and trucks will be assembled each year at this plant as the Algerian government seeks to set up an industrial base in the country.
Assembly is expected to start in 2010 following the development of plants in Tiaret, Ain Smara and Oued Hamimine. The project will be led by the German truck manufacturer MAN Ferrostaal, the statement said.
The Abu Dhabi investment company also said that it will own a majority 51 percent in joint venture tunnel-boring equipment manufacturing company with Herrenknecht, a German firm that has large stakes in tunnel-boring equipment manufacturing.
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