Khaleej Times reported that Abu Dhabi's Aabar Investments decided to take a minority interest in an auto assembling plant in Algeria.

The investment company will also own a majority 51% in JV tunnel boring equipment manufacturing company with Herrenknecht, a leading German firm that has large stakes in tunnel boring equipment manufacturing.

The firm said in a regulatory filing that the directors of the Abu Dhabi Securities Exchange listed investment company have approved 24.5% stake in a JV with the government of Algeria and Ferrostaal, to build the first of 3 factories in Algeria. This is the first stage in executing the MoU signed by the Abu Dhabi firm last year with the government of Algeria and Germany's auto giants Ferrostaal, Rheinmetall, Daimler, Deutz and MTU.

It said that up to 10,000 cars and trucks will be assembled each year at the plant as the North African country looks to establish an industrial base. Assembly is expected to start in 2010 following the modernization or development of plants in Tiaret, Ain Smara and Oued Hamimine. The project will be led by the German truck manufacturer MAN Ferrostaal.

Daimler, Deutz, MTU and Rheinmetall will participate as technology partners providing licenses and intellectual property. The investment in the auto manufacturing unit is the third major investment by the ADX listed company this year. It shook the stock markets last month by acquiring 70% ownership of Arabtec Holdings PJSC investing AED 6.4 billion at a share price of AED 2.3 billion.

(Sourced from Khaleej Times)