Work has started on an Algerian-Turkish joint venture for an integrated textile complex in Algeria's Sidi El Khettab industrial park near the city of Relizane, the Algeria Press Service has reported. The project is the first of its kind and the largest in Africa.
On the Algerian side, the joint venture, called Tayal, is composed of Algerian public enterprises Apparel & Clothing, which owns 30 per cent stake, and Texalg, which owns 21 per cent stake. The remaining 49 per cent stake is owned by a Turkish company, Intertay, which is a subsidiary of Turkish group Taypa.
The proposed investment in the joint venture is about $1.42 billion. It is expected to take about three years to complete and will create about 25,000 jobs.
It will be carried out in two phases, the first is from 2015 to 2018 and provides for eight weaving and clothing units, a business centre, a school to provide training in weaving and sewing to 400 trainees and a residential city for the employees, said Mohamed Laid Hamzaoui, Relizane province's Director of Industry and Mines.
The second phase, to be launched before the end of the first phase, concerns the construction of ten other factories manufacturing accessories of ready-to-wear clothes and synthetic fibres, he added.
Forty per cent of the production from the complex is to go to the local markets for domestic consumption while the remaining 60 per cent will be exported.
The extension of the African Growth and Opportunities Act (AGOA) for another ten-year period by the US government earlier this year has given a boost to the textile and apparel industry in Africa, with many companies investing to set up manufacturing units.(SH)
Fibre2Fashion News Desk - India
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