Sonelgaz Signs Two Agreements to Expand Local Manufacturing of Electrical Equipment
Deals with General Electric Algeria Turbines aim to deepen domestic industrial integration, strengthen local subcontracting and reduce import dependence
By Dr. Hana Saada
ALGIERS — Algeria’s Sonelgaz group has signed two agreements with General Electric Algeria Turbines (GEAT) to expand the local manufacturing of electrical equipment, in a move aimed at strengthening domestic industrial integration and reducing reliance on imports.
The agreements were signed between Sonelgaz’s Algerian Company for Electrical and Gas Industries (SAIEG) and GEAT, with the equipment to be manufactured locally across several SAIEG production units, according to Sonelgaz.
Production across three Algerian facilities
Under the agreements, metal structures will be manufactured at SAIEG’s Rouïba unit, while electrical cabinets will be produced in Oran and electricity meters at the company’s El Eulma facility.
The initiative is intended to expand local subcontracting capacity and strengthen industrial integration among Sonelgaz’s subsidiaries.
GEAT will use the locally manufactured equipment in its project to produce equipment for the development of the electricity transmission network operated by Sonelgaz-Transport Electricity and System Operator (STOS).
Reducing import dependence
The agreements form part of efforts by the Ministry of Energy and Renewable Energies and Sonelgaz to expand national production capacity, increase the domestic integration rate, reduce dependence on imported equipment and rationalise foreign-currency expenditure.
The contracts follow audits and conformity checks confirming that the locally manufactured equipment meets applicable international standards, paving the way for greater use of Algerian-made products in Sonelgaz’s industrial projects.
The initiative is expected to further consolidate industrial integration across Sonelgaz’s subsidiaries, broaden the domestic subcontracting network and strengthen Algeria’s industrial base in support of the electricity and gas sector.
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