A state-owned holding company specialized in agricultural, industrial and construction equipment, SGP EQUIPAG’s portfolio comprises around 30 companies and subsidiaries that are centered around three key sectors: agricultural machinery, industrial supplies, and public works vehicles and equipment.
Agricultural machinery represents almost 40% of the company’s business and includes producing equipment such as combine harvesters, tractors and the construction and repair of fishing boats, as well as seeding, fertilization and tillage equipment.
“The government wants to reach a certain level of food security for Algeria and to develop the nation’s infrastructure,” says Bachir Dehimi, President of EQUIPAG. “That is why there are some massive cash injections into expanding mechanization, modernization, and lands available for agriculture. This in turn enables us to increase our production and launch new products to supply the growing demand, as well as open new areas. Tapping into new markets represents an important incentive for potential foreign partners, such as Liebherr, with whom we have recently been completing an important deal for public works vehicles.”
EQUIPAG’s turnover has now reached $375 million per year and as the company is seeking further expansion it has implemented a $250 million investment program, spread over four years, in order to modernize and upgrade its tools and equipment.
Reducing imports
By aiming to boost domestic production of much-needed industrial equipment, EQUIPAG is also looking to help the reduction of the nation’s import bill, with a long-term view of even managing to raise exports of surplus stocks.
“In this era of diversification, production from the mechanical sector can contribute significantly to bringing down our imports bill.” Bachir Dehimi, |
Public works materials
Created in January 1983, the National Enterprise for Public Works Materials (ENMTP) is EQUIPAG’s subsidiary that manufactures a wide range of strategic equipment that is vital for a country in transition, such as excavators, hydraulic cranes, loaders, bulldozers, compactors, compressors and concrete mixers. It manages a sizeable workforce of 2,230 of people who last year generated a turnover of $105 million.
ENMTP’s four main sales offices are located in Algiers, Oran, Annaba and Constantine. In addition, it has a network of authorised sales agents across the whole national territory
The Constantine-based company has a total of six manufacturing subsidiaries, four of which – SOMATEL, SOFAME, SOFARE and SOFACO – are in the industrial area of Ain Smara. It also has FAFECO producing cranes and compactors in the port city of Bejaia, and SOMABE, which focuses on concrete materials in Algiers.
Managing the company’s industrial activities is its subsidiary EGEZIA in Ain Smara, where it also has a maintenance and renovation unit as well as a central spare parts depot.
International alliances
A restructuring strategy at ENMTP has led it to striking up partnerships with both Algerian and foreign operators, enabling it to boost its technological know how, develop competitive and up-to-the-minute products, and expand its distribution channels, most notably abroad.
ENMTP has set up joint ventures with some of the most renowned companies in the world. It produces excavators and hydraulic cranes in partnership with Germany’s Liebherr and compressors with Ingersoll Rand of the USA.
The alliances have helped see some new products roll off the company’s production line, including a L566-type loader, done in collaboration with Liebherr and proven to be particularly useful in mines and quarries, and a new 12-ton compactor that was developed in partnership with Europactor of Spain.
ENMTP also subcontracts to Algerian companies in fields such as machining, metallic construction and thermal treatment, adding another layer to its contribution to rebuilding the nation’s industrial landscape.
Mr. Dehimi concludes: “Partnership is for me a way to invest in the future; the transfer of know-how holds our future success.”
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