GE and Sonelgaz to build US$300mn facility in Algeria

turbine Brandy Frisky wikimediaThe turbines at the manufacturing complex will be developed with GE's latest technology, according to the company. (Image source: Brandy Frisky/Wikimedia) GE and Sonelgaz have signed an agreement to build a US$300mn manufacturing complex in Batna province

The complex will produce gas turbines, steam turbines, generators and control systems constituting blocks of power, which will generate 2,000MW of power from 2017, according to reports.

To build and operate this complex in Ain Yagout, new joint venture, General Electric Turbines Algeria will be established, General Electric stated.

Sonelgaz will take 51 per cent ownership of the business, while 49 per cent will be owned by GE Industrial, a subsidiary of General Electric.

Amara Benyounes, minister for industrial development in Algeria, said, "It will be one of the biggest plants of GE in the world. This also shows that foreign investment is returning."

The North African country is seeking to increase production capacity to put an end to frequent power cuts, especially during the summer.

GE already invested US$2mn last year in Algeria to build gas turbines with Sonelgaz. The current agreement between GE and Sonelgaz follows the international tender for the supply of equipment for power generation.

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