The domestic rail industry is expanding its capabilities through a new alliance uniting the National Company of Frames and Metallic Structures and Boilerworks (ENCC Spa)—a subsidiary of the National Steel Company (SNS)—and the FERROVIAL Group. Both entities signed an industrial cooperation framework agreement aimed at boosting domestic production of specialized freight wagons, particularly those engineered for hauling mineral resources.
Announced Sunday by the SNS Group, the agreement outlines the rollout of a nationwide manufacturing initiative for freight cars dedicated to transporting mining commodities. Executed on September 16 by ENCC CEO Abdelhalim Arouche and FERROVIAL Managing Director Mounir Abbassi, alongside FERROVIAL Board Chairman Said Arabat, the framework seeks to enhance domestic industrial volume in a crucial branch of rail transportation.
A primary objective of the deal is driving the domestic integration level above 70 percent throughout the production of this equipment. This strategy aims to curb reliance on imported specialized rolling stock while nurturing the expansion of a local manufacturing network.
This collaborative venture aligns with the broader push to modernize national railway manufacturing, supporting projects centered on processing Algeria’s vital mineral wealth. The upcoming rolling stock will notably serve transportation requirements for mining exports, including raw phosphate reserves.
The agreement further establishes the pooling of technical skills, operational expertise, and industrial assets from both enterprises. This combined effort is designed to nurture indigenous engineering know-how while accelerating technology transfer across the rail equipment manufacturing domain.
Beyond physical wagon assembly, the partnership paves the way for generating economic value added and creating skilled employment opportunities. It underscores a strategic commitment to strengthening industrial integration around major mining ventures and building the domestic logistics infrastructure required for their operational support.
Furthermore, ENCC and FERROVIAL intend to foster a more deeply integrated domestic sector capable of addressing the expanding freight demands of the mining industry while bolstering domestic industrial growth through locally manufactured equipment.