Embassy of Algeria in Vietnam

Since the beginning of the years 1990, Algerian industry with the image of all the sectors of its economy, engaged in a process of reforms mainly articulated around the operations of reorganization of the public companies which represented 80 % of the industrial potential of the country, 20 % remaining consisting of SME-SMI of the private sector.

Broadly Algerian industry joined again with a strong growth in 1998: thus, the cumulated production carried out at the end of September 1998 emphasized an increase of 8 % compared to the same period of the year 1997.

Algeria set up a programme of development of industrial competitiveness consisting of the control of a new step of accompaniment of the productive sector and this in preparation for the application of a vast program of privatization.

The public industrial sector covers all the range of manufacturing industries:

Basic industry: mechanics, iron and steel industry, metallurgy

Electric and electronic industries

Food industries

Textiles and leathers

Building materials (cement factory, brickyards)

Transformation of wood

Chemistry – pharmacy, manure

Building – public works

The analysis of the effects of the structural adjustment implemented these last years makes it possible to release:

A tendency favorable to the plan of the macroeconomic data: lower rate of inflation, interest rates, an appreciable reconstitution of the reserves of exchange and a stabilization of the rates of exchange.

The installation of a legal framework adapted better to the requirements of the new economic context.

For that the program of the government in the field of industry accented, on three great accesses:

Continuation and the deepening of the policy of reorganization

Continuation of the application of the program of privatization

The progressive installation of a financial, material and institutional environment allowing to lay down and apply a dynamic and coherent industrial policy for a durable revival of the investment and production.

This program and the device of implementation has the aim of accompanying the process of liberalization by the economy which, by 2010, should result in the application of the multilateral rules governing the trade in the framework of the WTO (World Trade Organization) and the introduction of a free trade area with the European Union.

The partnership between the Algerian and foreign companies is under strong development.

In the field of iron and steel industry, the example of partnership SIDER/ISPAT which recorded in a few years of the promising results in finances terms and maintenance of employment.

In the field of the detergents, KENKEL took a participation in height of 60 % of the company of a joint-venture with ENAD. One of the consequences of this partnership is the maintenance of manpower of the two sites of productions (complex of Ain Témouchert and Réghaïa) in addition to one programme of levelling in favours of the personnel of this joint-venture.

Evolution of the global index in 2004

Source: ONS, Algiers, December 2005.

After a rise of 2.7 % in first half of the year, the industrial production of the national public sector recorded a fall (-1.5 %) in second half of the year, locating the growth of the year 2004 compared to 2003 to +0.4 %.

This tendency is the fact primarily of the fall (-2.3%) of the levels of production of manufacturing industries with a fall of 10.1 % in the fourth quarter. A

part from Building materials (+8.8 %), industries of Leathers and Shoes (+11.8 %) and to a less degree of Industries of Iron and steel, Metal, Mechanical, Electric and Electronic, called ISMMEE, (+0.6 %) which was characterized by positive rates of increase, all the other sectors recorded falls of their production, in particular industries of agro-alimentary (-15.6%) and of the textiles (-14.7 %).

The energy sector continues to record good performances by carrying out a rise of 5.8 % in 2004 after 6.6 % in 2003. For hydrocarbons, the growth is 1.1 % in 2004.

In terms of utilization ratio of capacities (TUC) of production, the total evolution of the industrial production of the companies of the national public sector recorded a light fall between 2003 and 2004, passing from a TUC of 50.6 % to a TUC of 50.0 % for the whole of industry.

Rises are observed for certain sectors such as the ISMMEE, Building materials, Leathers and the Shoes and Wood. The chemical industries know stagnation. The remainder of the activities recorded falls.

Evolution of the index of the industrial production by branch of industry (2001-2003)
National Public.

Base 100 in 1989

CODE NSA

ENTITLE AGREGATION

INDICES

VARIATIONS

TUC *

2002

2003

2004

2001/
2002

2002/
2003

2203/
2004

2002

2003

2003

GENERAL INDEX

86,0

87,0

87,3

1,1

1,1

0,4

51,0

50,6

50,0

INDEX EXCEPT HYDROCARBONS

74,8

73,8

73,8

0,0

-1,5

0,2

46,8

45,8

46,3

NSA 02

ENERGY

187,7

200,0

211,6

4,3

6,6

5,8

-

-

-

NSA 03

HYDROCARBONS

133,8

143,7

145,2

4,1

7,4

1,1

101,5

105,6

93,2

NSA 05

MINES AND CAREERS

83,0

83,6

82,7

7,4

0,6

-1,0

55,3

56,2

55,5

NSA 06

I.S.M.M.E

67,2

73,2

73,6

7,0

8,9

0,6

43,3

49,3

50,1

NSA 07

MATERALS OF CONSTRUCTION .CERAMIQUE, GLASS

104,7

96,8

150,4

6,2

-7,5

8,8

69,0

64,5

70,1

NSA 09

CHEMISTRY, RUBBER, PLASTIC

88,8

79,4

78,0

-5,8

-10,4

-1,8

46,4

38,1

38,5

NSA 10

Ind. of AGRO-ALIMENTARY. TOBACCOS, ALUM.

60,5

48,0

40,5

-19,1

-20,6

-15,6

55,3

44,2

39,3

NSA 11

TEXTILES & CLOTHES INDUSTRY

29,6

28,9

24,6

3,7

-2,4

-14,7

34,5

34,3

29,7

NSA 12

IND. LEATHERS AND SHOES

13,0

12,0

13,5

-19,3

-7,7

11,8

12,1

10,7

12,9

NSA 13

IND. DRINK, LIEGE, PAPER IMPRIM

31,2

29,3

28,1

0,9

-6,1

-4,2

19,2

18,7

20,7

NSA 14

OTHERS INDUSTRIES

27,3

24,1

25,3

1,2

-11,9

5,2

-

-

-

* TUC: Utilization ratio of the capacities