The National Company of Industrial Vehicles (SNV) is withdrawing from the capital of Renault Algeria Production (RAP), the Algerian-French company which owns the French manufacturer’s factory in Tlelat near Oran.
The Algerian truck and bus manufacturer has been replaced in Renault Algeria’s funding round by another public group: Madar Holding (formerly SNTA).
The latter confirmed Thursday evening the information published by the press on this operation, without specifying the amount of the transaction which allows him to hold 34% of Renault Algérie Production, a company stopped since 2020, for lack of assembly kits for assembly of diamond brand vehicles.
This replacement was validated by the State Participation Council (CPE) on April 20, indicated Madar in a press release published on his Facebook page, stating that it “constitutes one of the axes of the restructuring of activities and the reconfiguration of SNVI’s assets”.
The Madar group, headed by the resigning president of the Algerian Football Federation Amara Charaf-Eddine, specified that it is a “simple change of method” which is part of the “general orientations” of the State which intends to “gradually reorganize” the interests it holds in partnerships involving groups with public capital.
“Thus, within the framework of the major project to create the mechanical platform planned in particular on the industrial sites of Rouiba and Constantine and the redeployment of the assets of the SNVI, undertaken by the public authorities, the latter had to offload its stakes respectively of 34% within the company RAP and 20% within ZF-Algeria”, added Madar.
The Madar group specifies that this operation does not mean the rescue of the Algerian factory of Renault, closed since 2020, after the decision of the Algerian authorities to abolish the preferential regime of imports of SKD / CKD kits for the assembly of cars.
“It is neither more nor less than a decision which tends to modify in part the conditions for the continuation of the partnership”, affirms Madar, adding that this decision “does not carry any rescue plan like the ‘suggested some headlines from the national press’.
Madar’s message remains vague, however, concerning the future of Renault Algeria production.
The public group recalls that it is “above all a public company, with a financial vocation, and whose objectives consist exclusively in the management of resources and public participations according to opportunities and in line with the investment policies drawn up by the State-Shareholder”.
Madar also affirms that these participation operations aim at industrial diversification and are oriented towards the most promising sectors and maintains that he “is only continuing his strategy of diversifying his activities as approved by the State and started from of 2017”.
Thus, the entry into the capital of Renault Poduction Algeria will allow Madar Holding, therefore, to “secure its financial positions and consolidate its growth”, according to the press release.
Then, Madar adds that Renault Production Algeria “will be able to count on its contribution in order to achieve its economic objectives in Algeria and to continue its development there”.
Launched in 2014, the Renault assembly plant in Algeria thus becomes the property of the Renault group (49%), Madar (34%) and National Investment Fund (FNI, 17%).