Algeria suggests textile joint-venture

Algeria suggests textile joint-venture

JAKARTA (JP): Algeria has invited Indonesia to enter its textile market in the form of joint venture company to be established in Algeria.

After meeting with President Soeharto, Algerian Foreign Minister Mohammed Salah Dembri and Minister of Small and Medium Industries Redha Hammiani said that publicly-listed Texmaco will form a joint venture company with Algerian partners to produce synthetic fiber.

Dembri said the joint-venture company will produce for the Algerian market. "And if the outcome is good, we will possibly sell part of the production to Europe and Africa."

However, Dembri did not elaborate on the value of the venture, saying only: "This is a big project."

He said the venture agreement will improve the two-way trade between Indonesia and Algeria, which accounts for only US$200 million annually -- compared to Algeria's total annual trading volume of US$12 billion.

Major Indonesian commodities exported to Algeria include wood products, textile and coffee, while Algerian exports to Indonesia include hydrocarbon and other oil-related products.

President Soeharto also received a courtesy call yesterday from Madagascar Foreign Minister Jaques Lylla, who was also seeking better trade cooperation with Indonesia.

Lylla and Dembri were in Indonesia to attend the commemoration of the 40th anniversary of the Asia-Africa Conference and the three-day ministerial meeting of the Non-Aligned Movement held in Bandung, West Java, last week. (rid)