Airbus to Open Plant in Tunisia to Cut Costs Airbus in Tunisia: “An ...

www.investintunisia.tn
Airbus to Open Plant in Tunisia to Cut Costs
European plane manufacturer, Airbus is planning to open a parts factory in Tunisia, as part of a new
restructuring plan to cut costs. The restructuring is set to save the company US$1.4billion, within the parent
company EADS. According to its chairman, Louis Gallois the weak dollar has forced EADS to expand its savings
plan.
The plans, which include 650 million euro of extra savings at the European plane maker, were unveiled to Airbus
unions during an Airbus staff committee and are said not to include new job cuts.
“Under this program there won’t be any more domestic job cuts” Louis Gallois told Le Monde in an interview.
"Airbus is hiring in the production sector to meet the activities’ demand”
The company announced in a statement that over the 650 million savings, 350 million would be generated by an
extension of the measures included in the previous Power 8 from 2010 to 2012 and 300 million would be generated
by the relocation of the production.
Dubbed Power8 Plus, the new plan comes on top of the earlier Power8 restructuring plan which called for 2.1
billion euro of recurring savings between 2007 and 2010, this time solely at Airbus and included 10,000 job cuts.
Gallois declared: 'Airbus will take over Latecoere's proposal to set up in Tunisia to make ordinary parts and invest
in more sophisticated production in France, especially for composites. We'll do the same in Germany and Spain.'
Building a factory in Tunisia would be Airbus's first direct venture outside the euro zone and only aims
at containing costs.
Moves to start airplane assembly in China in 2009 and in the United States in Alabama would save cash but are
also driven by strategic attention for these lucrative markets.
Airbus in Tunisia: “An opportunity” according to Luc Chatel
The French Secretary of State for Industry, Luc Chatel, considers that the decision taken by EADS to open a
plant in Tunisia “is more an opportunity than a threat.”
Nouvelobs.com
FIPA News September 2008
1

www.investintunisia.tn
New Aeronautical Project in Tabarka
An American Kuwaiti group is likely to settle shortly in
Tabarka (A tourist city in the extreme North of Tunisia) to
work in the sector of aeronautical maintenance.
According to the same source, this group is planning to
invest about 1 billion TND for the construction of an
important maintenance unit for large transport aircrafts in
the immediate surroundings of the Tabarka International
Airport.
This investment, for which the foreign group has already
done the necessary statements since March 2008, will be
implemented in several phases, the first of which
necessitates 120 million TND of investment.
A french aeronautics subcontractor
opens in Tunisia.
According to the French economic periodical “Usine
Nouvelle”, Mecahers, an aeronautics subcontractor
established in Haute Garonne, in France and expert in
precision mechanics has recently opened a production site in
Tunisia.
The magazine reports that a new company, TMIS, has been
created for the purpose of this project. 80% of TMIS (Team
Manufacturing Industry and Service) is owned by Mecahers
and 20% by Sotip, another company from the same French
region.
TMIS will be devoted to electric furniture assembly and to
subassembly of aeronautical structures. The new company
will start its activities in the South of Tunis, in a first
workshop of 1 600 m2 with a staff of 15 persons. “the target
is to develop this site to reach 300 employees by 2012”,
declared Patrick Razat, Chief Executive Officer of
Mecahers.
Tunisia: The aeronautics industry to
create its lobby while waiting for Airbus
September has not only witnessed the announcement of
Airbus decision to open in Tunisia, but also the growth of
Gitas* membership, which moved to 18 members as
compared to 7 members a year earlier. The objective of
Gitas is to reach 30 members in the first term of 2009.
Gitas is an association which groups among others,
companies in the aerospace sector operating in
Tunisia and large groups such as Latécoère, Zodiac
and Sogema.
One of the objectives of Gitas is to encourage the
exchanges, collaboration and synergy in the
aerospace sector in Tunisia in order to support the
development of a Tunisian aeronautics ‘supply
chain’.
The companies members of this association are
active in different sectors such as wiring harness,
sheet metal working, precision mechanics, foundry
and surface treatment, cards and electronic
sub-assembly as well as plastics processing, aircraft
maintenance and engineering and design services in
the field.
*Gitas: Tunisian Aerospace Industries
Association
The German Group Draxlmaier to
be soon operational in Siliana
The new industrial Unit of the German Group
Draxlmaier set up in the Siliana governorate
(Northwestern Tunisia) will start producing in a few
weeks. All necessary equipment and material have
already been shipped and installed in the group’s
new premises.
The plant is specialized in automotive parts and
electric cables exclusively produced for exports.
This Unit, which is set up over a covered surface of
25,000 m2 necessitates an investment of 20 million
dinars, and will employ in its first phase 1,650
persons (executives and workers).
During his visit to Tunisia in September 2006, Mr.
Fritz Draxlmaier, Chief Executive Officer of the
German group expressed Draxlmaier’s commitment
to reinforce its activities in Tunisia under the
expansion schemes. The German Manager even
expressed his intention to build an entire industrial
estate in the region of Siliana. This initiative is
encouraged by the favorable business climate which
characterizes Tunisia and by the local skilled labor
force.
FIPA News September 2008
2

www.investintunisia.tn
In 2007 the group purchased a lot in Siliana of
14 ha. The construction works of the industrial
unit have started the same year.
This project will be expanded in 2009 and 2010
and will cover a surface of 43,000 m3,
representing a global cost of 60 million dinars for
the “Draxlmaier” project in Siliana. With this
growth, the unit will employ a total of 4,600
persons.
Benetton to open
a production unit in Gafsa
With an investment of about 280 thousand
dinar, a new industrial textile unit belonging to
the Italian group “Benetton”, the largest
European textile clothing supplier, will be
operational starting from October.
This exclusively exporting unit will generate 100
jobs.
In the second phase, 3 other units, which will
generate 340 jobs, will open in Metlaoui as well
as in the industrial area of Laguila (South Gafsa)
and in Borj Lakarma (Mdhila).
The Italian Group of Safety
Footwear “Cofra” opens in Tunisia.
Cofra, an Italian manufacturer of safety footwear will
develop an industrial unit in the city of Tabarka (Jendouba
governorate) on a land of 3.5 ha.
The amount invested for this project is estimated at 20
million dinars. The preparation works will start by the end of
2008. In its first phase the project will create about 2,000
jobs.
A delegation of Cofra group has recently visited the location
where the plant will be set up. The project managers are
planning as a second step to create another unit specializing
in manufacturing safety work clothes, which will generate
about 3000 new jobs.
Continental to Relocate its activities:
How Tunisia stole a march on Bulgaria and the
Czech Republic
The Tunisian economic press reported that according to the
web site ‘l’Usine Nouvelle’ Continental group has finally
decided on Tunisia for its relocation after a benchmarking
with the Czech Republic and Bulgaria.
Investments of more than 800 thousand dinar
will be provided for the implementation of these
units which will start actually producing around
November and December 2008.
Based in Sahline (Monastir governorate) Eastern
Central area since 1994, the Italian textile group
Benetton intends consolidating its presence in
Tunisia by creating 20 making units by the end
of 2009 employing about 3,000 workers.
A new industrial platform has already opened in
2006 in Kasserine (Central Tunisia).
A new industrial textile unit generating 100 jobs
will be operational as of next October, by means
of investments worth 280 thousand dinars.
Besides, compared to the two other countries Tunisia seemed
favorite, because it was the solution that Continental
employee hoped.
Indeed, the Tunisian location allowed
reducing the job cuts to 382 over a total of 780 in the
company instead of the 560 job cuts considered in the two
other alternatives. All of the car radio production will hence
be relocated to Tunisia during the second quarter 2009
according to the web site ‘l’Usine Nouvelle’.
A world leader developed his activity in
Tunisia
Lectra, the world leader in integrated technology solutions
dedicated to industries using soft materials, has recently
announced in a release the appointment of Jean Patrice Gros
to the position of Lectra Tunisia Director.
The main mission of J.P Gros will be to develop Lectra’s
presence in Tunisia in the fashion and automotive sectors as
well as in the expanding markets of industrial clothing,
aeronautics and marine.
Read more on page 4
FIPA News September 2008
3

www.investintunisia.tn
Jean Patrice Gros declared: “Tunisia has considerable assets
to increase its economic development in the textile field.
First it has a skilled labor force with high adaptability
qualities. Besides, Tunisian industrialists are increasingly
inclined to reinforce the quality of their design, production
and logistics.”
In a release, Lectra adds that: “Tunisia is indeed undergoing
deep transformations and several companies are now
switching from sub-contracting to co-contracting and finally
to design. Beyond the European market, Tunisia
represents a promising growth engine for the countries
members of the Mediterranean Union project.
Lectra Tunisia is equally intent on developing partnerships
with Tunisian schools and universities and on helping young
designers by giving them access to innovating technological
solutions that they can use in their professional life.” Lectra
already has 2 offices in Tunis and Ksar Helal (Monastir
governorate) and has today about 400 clients.
Lectra is the world leader in integrated technology solutions
that automate, streamline and accelerate product design,
development and manufacturing processes for the soft goods
industries. Lectra develops the most advanced specialized
software, cutting systems, and provides associated services
to a broad array of markets including fashion (apparel,
accessories, footwear), automotive (car seats and interiors,
airbags), aeronautical, marine and furniture. Lectra serves
20,000 customers in over 100 countries with 1,500 employees
and 217 million euro in 2007 revenues.
A Tunisian – South Korean silk
manufacturing unit
A Tunisian – South Korean silk manufacturing unit has
become operational a month ago in the region of Hwamdia
in Tabarka (Jendouba governorate, North Western
Tunisia). The project’s cost is estimated at 1.44 million
dinar, of which 522 thousand dinars will be provided by
Tunisia and 918 thousand dinars by the South Korean
International Cooperation Agency.
The first phase of the project consists in planting mulberry
trees over a surface of 20 hectares in favor of 20 silk
breeders, while crop nurseries had been prepared to intensify
seedlings culture.
So far, about ten higher education graduates in
the region have benefited from agricultural
irrigated parcels and a practical training in
planting mulberry trees under the co-monitoring
of the agricultural development regional office
and Korean experts. As a result, about 10,000
mulberry trees have been planted.
A new world Scale bricks manufacturer
to open production units in
Tunisia
The brick manufacturer Koramic has just
unveiled its plans to create production units in
North Africa and Tunisia will undoubtedly be its
first stage, according to lemoniteur.com.
In January 2004, Koramic, a manufacturer of
terracotta roof tiles was acquired by the Austrian
Group Wienerberger. Wienerberger AG is the
world's largest manufacturer of clay bricks, and
number 2 in clay roof tile production in Europe.
Its global sales reached 2.47 billion euro in 2007,
55% of which are derived from Western Europe,
34% from Eastern Europe, and 13% from North
America.
The Wienerberger group has about 260 factories
with 13,640 employees distributed in 25 countries.
SODIFRANCE Heads for Tunisia
SODIFRANCE, which has recently opened in
Tunisia opts for onsite work and internationalizes
its recruitment of Tunisian engineers.
This French Software and computing services
companies with a capital of 5 million euro is
organized around 11 subsidiaries.
SODIFRANCE is specialized in provision of IT
services to corporate customers namely in the
sectors of Banking, insurance, retirement pensions
administration and defense.
SODIFRANCE is expert in legacy modernization,
evolution towards new technologies and in service
oriented architectures, based on a strong know
how and software solutions enabling an industrial
FIPA News September 2008
4

www.investintunisia.tn
approach of Information developed by its R&D center.
Its 2 specialized subsidiaries, Onext and Mia-Software,
operate in new technologies: Onext designs internet
portals and intranet based on Open Source CMS
technologies. As for Mia-Software, it develops and
markets software series devoted to application life cycle
optimization.
CETIM-France to create a subsidiary
in Tunisia
During a recent visit to Tunisia, the members of a
delegation of CETIM-France headed by Philipe Choderlos
de Laclos, Chief Executive officer, have expressed their
wish to create a subsidiary in Tunisia, in the form of a
light high-tech engineering structure oriented towards
local targeted sub-contracting and a sustainable
technological partnership.
The subsidiary’s objective is to provide the industrial
sector with technical support services and to offer the
technology transfer experience of CETIM-France to other
countries of the region (North Africa, Middle East and
Africa). Another major objective is to consolidate
CETIME’s supportive actions in Tunisia in the field of
Research, development and innovation through
European programs intended for Tunisia.
This new project brings Tunisia closer to Europe and
creates a high level of value added contributing
significantly to the attractiveness of the country as FDI
destination namely in the automotive and aeronautical
sectors.
Enfidha Deepwater Harbor:
Construction Works to start in 2009
Eight consortia among which 4 from Western countries
(Canada, Italy, Denmark and Portugal) and two from the
Gulf have been shortlisted for the construction and then
operation of a new deepwater harbor according to a
concession agreement in the Area of Enfidha (East
Central Tunisia).
The deadline for submitting financial tenders is December
25th and the selected investor will be known during the
first term of next year. The construction phase of the
project is due to begin before the end of 2009.
The Tunisian state will award the selected investor an
area of about 1,200 hectares with room for expansion if
needed for the realization of the harbor while another
2,000 hectares have been allocated for supporting
activities including logistics and warehousing. In
return, Tunisia will receive a fixed annual royalty
per square meter and another variable one based on
the harbor traffic.
The technical feasibility study of this project is
carried out by the Dutch consulting firm “Royal
Has Koning” associated with a Tunisian Partner,
International Development Consultants (IDC).
It will boast an annual container capacity of 5
million containers while the multipurpose terminal
will host 4.5 million tons.
This project represents an excellent platform for
international traffic with the transshipment
activities and other shipment services for the
Tunisian market. For the international activity, the
study predicts a capacity of 1.2 million TEUs
(twenty-foot equivalent units) in 2008 which will
grow up to 3.9 million TEUs in 2020.
It will contribute to make up for the serious
capacity shortage as soon as in 2009, because of its
position as a major Central Mediterranean
transshipment hub (between the Western and
Eastern Mediterranean basins), and its location is
one major asset for air transport (with the future
Enfidha airport), land transport (with the highway
facilities Bizerte-Sfax), and rail transport (Tunis-
Gabès).
Trade Exchange Tunisia – South
Mediterranean: 1.98 billion dollars
According to official figures, Tunisian trade volume
with the southern countries of the Mediterranean
basin has grown by more than 50% in 2007.
The global trade volume in 2007 has reached 2.242
billion dinars.
Exports to the countries of the Mediterranean basin
have reached 956.7 million dinars as against 648.2
million dinars in 2006 (+ 47.5%).
Libya, which is the first partner of Tunisia at the
level of North Africa and the Arab world and the
fifth on a world level, is ahead of all the partners of
the Southern Mediterranean basin, followed by
Algeria (38.4%), Morocco (23.1%) and Egypt
(11.6%).
The exports volume to the other countries of the
Southern Mediterranean basin only represents 2.7%
of the global volume.
FIPA News September 2008
5