Two European and three Far Eastern firms recently placed bids for a contract to construct and manage four vehicle assembly plants in Libya.
The contract, involving construction of four assembly plants, will be awarded to a single bidder. The project aims to completely satiate local demand for cars and to limit imports to specialty models.
Bid manager Picorp Holding of Egypt awaits two additional European companies to confirm their offers. Contract documents were delivered to 14 companies. While company names were not officially released, Industry sources revealed the likely bidders as: Hyundai, Italy's Fiat, France's Renault and Peugeot-Citroen, and South Korea's Daewoo, which currently manufactures vehicles locally.
"We have some good companies and we are quite happy with the response," a Picorp official announced. Picorp revealed its intention to make a shortlist of companies by August for the client, Libyan Arab Domestic Investment Company (LADIC). LADIC hopes a suitable company will be awarded the contract before the end of 2000. "For the project to be feasible, you need mass production of one model," a Picorp official disclosed.
The plants, which will be located in Benghazi, Misurata and Tripoli, and will boast a combined production capacity of 80,000 vehicles per year, will push Libya's total vehicle production to 105,000 vehicles per year.
© 2000 Mena Report (www.menareport.com )