It would be fair to say that the mechanical sector in Tunisia is one of the strongest going, with recent statistics indicating that there were 551 companies operating in this segment of the country. The fact that there are over 34,000 employees in the mechanical industry also speaks volumes about its size and means that there is plenty of money to be made when one considers investing in the field.
Another statistic that is sure to appeal to a potential investor is the fact that, on average, the yearly production value is 2,700 million dinars. Moreover, with this figure growing year-on-year and with Tunisia supplying mechanical goods to countries such as Italy, France and Germany, it is clear there are huge profits to be made in the Tunisian mechanical market.
Assets
If one is thinking about investing in the mechanical industry, they will already benefit from the following strengths:
· The mechanical industry is regarded very highly in the likes of France, Italy and Germany, with these nations being some of the country’s main clients
- · In comparison with other countries, Tunisia has very competitive construction costs
- · The nation is gifted with an extremely talented workforce, with tens of thousands of graduates seeking employment every year, with many scientists and engineers being amongst them
- · The country boasts nine airports and seven seaports, meaning that it’s transfer links are second to none
- · Tunisia benefits from a free trade zone with the EU
- · For those companies that export their entire production, they can benefit from a ten year tax exempt period
The fields within the mechanical industry
There are currently six major segments to the Tunisian mechanical industry:
- · Steel-foundry and non-ferrous metals
- · Metalworking
- · Machines and equipment
- · Components for cars, cycles and motorcycles
- · Shipbuilding
- · Manufacture of railway equipment
Out of these sectors, it is undoubtedly the components for cars, cycles and motorcycles one that is the most lucrative to the industry. This accounts for around 45% of the production value of the whole mechanical market, meaning that investors have incredible opportunities within it. Metalworking is next in the list, with this providing approximately 26% of the value for the industry. There is also plenty of money to be made in Steel-foundry and non-ferrous metals, with the current value figure being 19% of the overall industry.
In terms of competitiveness, metalworking contains the most amount of companies with 349 vying for custom, according to the Agency for the Promotion of Industry in 2008. At the opposite end of the spectrum is those companies that manufacture railway equipment, with just two falling into this bracket at the last statistics check.