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Sonatrach to launch automotive subcontracting

The company expects propane dehydrogenation to produce propylene, a plastic used by many industries, including automotive, and to manufacture vehicle interior components.

The national oil company, Sonatrach, plans to embark on the auto contracting industry, we learn from reliable sources. And, the hitch can be mounted at the petrochemical complex of dehydrogenation of propane and polypropylene production, planned in Arzew.

The complex is the result of a partnership between the national company and Total. In early October, the two partners created a joint company called Sonatrach Total Polymer Company (Step), 51% owned by Sonatrach and 49% by Total. She is responsible for building and managing the complex in question.

The project involves an investment of around $ 1.4 billion. The production capacity will be 550,000 tonnes per year, which STEP will market.

Sonatrach will supply annually from the liquefied petroleum gas facilities in Arzew the 640,000 tonnes of propane required for the project.

Technically speaking, it is the dehydrogenation of propane that makes it possible to produce propylene, a plastic used by many industries including the automotive industry, and to make components of the passenger compartment of vehicles, our source points out.

Currently, Algeria imports 100% of its polypropylene needs. The national oil company also noted in its tablets the construction of a tire manufacturing plant.

A realisable goal? To achieve this, Sonatrach is calling on Algerian companies to seize the investment opportunities offered by its development plan and to be heavily involved in the implementation of projects that improve the level of national industrial integration.

Kamel Agsous, president of the national coordination of subcontracting exchanges, present at a meeting on the development of subcontracting organised yesterday by the Confederation of Algerian Industrialists and Producers (Cipa) in Algiers, noted that this objective will be particularly ambitious. And if it is realised, this, he continued, will allow Sonatrach to save in the order of $ 14 billion.

Mr. Agsous, however, estimated that at the current pace of automobile production, it would be unrealistic to claim a production volume of 500,000 units by 2021, as projected by the public authorities.

 

Youcef Salami – Liberte-algerie.com

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