Cevital Group, a leading manufacturing conglomerate founded by Algerian billionaire Issad Rebrab, has formed a joint venture with Brazilian electric motor manufacturer WEG SA to produce and sell electric motors for washing machines.
According to the binding documents, the electrical and machinery company will be established in the Algerian city of Setif under the brand name “WEG Algeria Motors SpA.” WEG will hold a 51-percent stake and Cevital will hold a 49-percent stake.
WEG stated that its investments in the JV will primarily focus on technology and know-how in electric motor production for home appliances in Algeria.
The company, which will begin operations in the fourth quarter of 2022, will initially produce motors for washing machines manufactured by Cevital and other regional partners before expanding into other markets.
Julio Cesar Ramires, WEG’s superintendent director of commercial motors and appliances, commented on the joint venture, stating: “With this partnership, we will expand our share in the international market for electric motors for the home appliance segment, taking advantage of our technology and geographic diversification to capture new commercial opportunities.”
The transaction comes nearly four weeks after Rebrab stepped down as CEO of Cevital Group, Algeria’s largest private conglomerate, as part of the group’s strategic transition process, which began in late 2020.
His departure from the group, which follows more than five decades of developing the local economy and growing Cevital Group into a leading brand in the Middle East and North Africa, was accompanied by the appointment of his son Malik as CEO on July 1.
Rebrab is the seventh-richest man in Africa, trailing Nigerian telecom and oil magnate Mike Adenuga, who has a net worth of $6.7 billion.
Since 2020, the Algerian businessman’s net worth has increased by $900 million, from $4.2 billion to $5.1 billion.