Algeria’s national ship repair company Erenav has signed a memorandum of understanding (MoU) with Portuguese Group Martifer on the setting up of a joint venture in shipbuilding and ship repair that will be located in the North African country.
The two parties were both excited about the agreement and they hope to use the venture to springboard into opportunities offered by the African market.
Erenav’s Director General Yous Adel said Algeria’s domestic market is “very dynamic especially with the reinforcement of the national fleet through the new acquisitions of the national shipping company (CNAN).”
The implementation of the MoU will cover a comprehensive program that will help develop the machinery of tug boats and marine works, he said.
The new joint company will be established at Arzew port in Oran. It will focus on shipbuilding, repairing and the conversion of oil tankers into cargo ships and vice versa.
Erenav will own 51% of the stakes while the remainder will be controlled by Martifer.
General Manager Belmiro Torres Couto of Portuguese Firm Marti Metal, a subsidiary of Martifer Group, said the investments in Algeria are geared towards making “innovation and not construction and repair only” because there are “new ideas and new projects” that they intend to implement. The official added that the joint venture will enable the group to enjoy the opportunities offered by the African market.
Director Adel stated that the joint venture will focus on the local market before targeting the external ones.