Constantine Algeria – United Arab Emirates’ Aabar Investments PJSC said Monday it signed a deal with Algeria and five German companies including MAN Ferrostaal AG and Daimler AG to make all-terrain vehicles and trucks in North Africa.

The agreement will eventually create a joint-venture company between Aabar and MAN Ferrostaal to operate the plants in Algeria, MAN Ferrostaal said in a separate statement.

The Algerian venture will make as many as 10,000 vehicles and trucks a year, with work expected to start in 2010. Aabar bought a stake in Daimler earlier this year.

Neither company gave a value for the deal, and Aabar Chairman Khadem Al Qubaisi declined to comment when called. Algeria’s Ministries of Defense and Industry, which signed the deal, didn’t return calls for comment.

Aabar and MAN Ferrostaal are both majority-owned by the Abu Dhabi government’s International Petroleum Investment Co., or IPIC, which invests the emirate’s oil wealth.

MAN Ferrostaal will build three vehicle and engine manufacturing plants in Tiaret, Ain Smara and Oued Hamimine and modernize others. Daimler, Deutz AG, MTU Friedrichshafen GmbH, and Rheinmetall AG will act as technology partners in the deal, providing licenses and intellectual property, Aabar said.

“It is intended that the portion of local production in Algeria can be gradually increased over time, for example by identifying and using domestic suppliers,” MAN Ferrostaal said.

“The products which have been identified for potential manufacturing include Sprinter, Unimog, G-Type and other four-wheel-drive vehicles and engines,” Aabar said.

Mercedes-Benz, a unit of Daimler, produces a range of Unimog trucks, which are multipurpose four-wheel-drive vehicles used for off-road purposes and as military vehicles.

Aabar became the biggest shareholder in Daimler in March when it bought a 9.1% stake in the company and said it would pursue joint projects. In July, Aabar bought 40% of Daimler’s stake in electric-car start-up Tesla Motors Inc. In July, it also bought a 32% stake in Virgin Group’s space travel unit Virgin Galactic and said it would create the world’s first commercial spaceline with Virgin.

Initially created to invest in oil and gas, Aabar has become a diversified investment vehicle for the Abu Dhabi government. It is majority-owned by IPIC, which owns 70% of MAN Ferrostaal.

A nemdil and Agencies