The Washington Times

                            A Special International Report Prepared by
                           The Washington Times Advertising Department - Published on July 2, 1999
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Advertisers

(1) Sonatrach, An International Petroleum Group

(2)Council of Privitisation

(3)Bank of Agriculture and Rural Development

(4)CNEP

(5)Group Touring Club of Algeria

(6)Groupe Enad

(7)Wines from Algeria

(8)Blanky Industry Company

(9)EFG - Hermes

(10)DHL Worldwide Express

(11)Enterprise De Travaux Publics Batiments & Hydraulique

(12)Office National des Aliments du Betail (ONAB)

(13)Hotel El Djazaïr

(14)Halliburton Company

(15)Algeria National Enterprise for Tourism

(16)Investment Promotion, Support and Monitoring Agency, APSI

(17)Hôtel El-Aurassi

(18)Saïdal Group

(19)Mechanical Public Holding

(20)ENCG

(21)Sonatrach, Partnership the strategic choice

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A Special International Report Prepared by The Washington Times
Advertising Department

Written by:
Rod Craig

Propject Director:
Hala Nasreddine

Photography by:
Rod Craig

For more information, call
The Washington Times International Advertising Department
at (202) 636-3035
(202) 635-0103 fax
e-mail: natlad@wt.infi.net

ENCG strives to improve refining system and attract foreign investment
Tremendous potential for expansion

38-1.gif (25642 bytes) A company which imports large quantities from the US is looking for partnership propositions. According to Aissa Sahli, president of the board of the ENCG, this public enterprise, created after Algeria’s independence to make fats and soaps, has a tremendous potential for expansion.

The company, which manufactures table oil, margarine and ghee, glycerin and soaps is the industry leader in Algeria. Annually it produces 320,000 tons of table oils, 100,000 tons of soap and 20,000 tons of margarine.

“Algerian consumption of margarine is from 80 to 100,000 tons and the rest is imported,” says Aissa Sahli. "Our global turnover is about $450 million," he adds. "We import raw oil and refine it here. Our chief supplier is the United States with about $200 million dollars as well as a smaller supply from Argentina. We also import soya and during 1991-3, we brought in 150,000 tons of soya each year.

"One of the problems is that our refining systems are different. In the US they use a physical refining system. Here it is chemical, which gives the oil a disagreeable smell when it is used for frying.

"We have diminished our imports of soya oil. In 1998, we imported 60,000 tons in addition to 120,000 tons of sunflower oil, as well as colza oil which we imported from Europe. We bring in hydrogenated oils for margarine and marine oils.

"We have been holding meetings with foreign companies, asking them to help us with the refining problem. There are methods, but they need further investment. A certain amount of small equipment is needed in order to use more Soya oil which is always cheaper than sunflower.

"It is a problem which we have to solve and the quicker we do it the more soya oil we shall be able to import. Soya is also much more advantageous for by-products. The company is interested in partnerships and is particularly keen to co-operation in the process of Trituration. As soya is a basic product used in the animal foods the company would therefore be able to produce oil and animal food at the same time.

"There is no production of oil seeds in Algeria, apart from olives," said Mr Sahli. "It s not a question of climate. Is it more economical to produce wheat. There is also a problem with irrigation.

"What we want is to develop our relations with our partners and our principal suppliers. We must develop ourselves and invest in quality and development, not only in table oil, but in all fields. We need technology and major partners. We don't just want to have this relationship position of seller-buyer in which we find ourselves.

“This has got to be an honest partnership, so that we can take a place in the market. We are looking for partners and investors in the capital of our five subsidiaries. We have nine factories.

"Our purchases are $243 million of which $100 million comes directly from the United states. We can transform about 500,000 tons per year and have progressed approximately 8% last year. It should be the same this year."

Mr. Sahli also feels that attention has to be paid to agriculture in the Sahara and that care should be taken not to make mistakes concerning the types of crops which should be grown. It is necessary to calculate the best yield per cubic meter of water, he warned. "They talk about growing wheat in the desert. Certainly you can have yield of 40 quintaux per hectare but, when you think about it, they are 2,000 kilometers away from Algiers - what will be the price when it arrives here?

“The agricultural people don't understand anything abut added value. They have got to grow cereals, they have got to grow melons. It would be more practical to grow water melons in December to send them to the French market out of season."

On the subject of desert water he said that there is often salt water between the fresh water reserves and the surface. When the layer is drilled, it can pollute the fresh water. "It is monumentally stupid. People are still thinking of food autonomy - utopia. Nowadays, they should be thinking of food security. We must cover the cost of our food imports by producing other high value added food products for export."

Table of Contents

(1) His Excellency Abdelaziz Bouteflika, President of the Democratic and Popular Republic of Algeria

(2) Country has resources and potential and is moving toward peace

(3) History

(4) Stability predictable for Algeria

(5) Terrorism is costly - in lives and finances

(6) Political Parties

(7) Despite being free, press sometimes is silenced

(8) Local bidders and foreign investors being courted

(9) Despite previous problems, economic future is bright

(10) Institutions

(11) Director-General sees light as country comes out of tunnel