Deal with Turkish company to revive Algerian textile industry
State-owned Société de Gestion des Participations Industries Manufacturières (SGP-IM) has concluded an agreement with Taypa Tekstil Giyim, a Turkish company, to construct a multi-million dollar textile-clothing industry center in Algeria. The partnership is a part of the government’s efforts to promote joint public-private venture in the country and to attract foreign investment.
The North African state’s textile and clothing industry has been on the decline for the past years and there are hopes that this investment agreement will bring it back on its feet. The project is expected to create job employment opportunities for more than 10,000 people. Société de Gestion des Participations Industries Manufacturières is specialized in garments, leather and footwear production but also has stakes in other business.
The industry which will be located 300 kilometers away from the capital in Relizane. It will be a multi-phase project which will be hosting eight textile and garment-making plants, a business center, training facility and a residential area for personnel according to the Algerian Minister of Industry, Small and Medium Enterprise and Investment Promotion, Mohamed Benmeradi. The project is evaluated to cost around $800 million to $900 million.
According to studies, the combined output of the two companies at the plant is expected to reach 60million meters of fabric per year and 60% of it will be exported. The manufacturing of jeans to supply the local market with 30million pairs is also part of their plans. Should things work out as planned, the industry should generate a total income of more than $640 at the end of the first five years in service. The public-private joint venture company to run the complex will be set up at the end of next month before construction begins on the Relizane site.