For a Global Investment of 125 Billion Dinars: The Tire Sector Structures Itself for 2027

Algeria is embarking on a significant industrial transformation with the launch of four key projects aimed at establishing a robust national tire manufacturing sector. This initiative, driven by the Algerian Agency for Investment Promotion and Development (AAPI), represents a total investment of 125 billion Algerian dinars (approximately $930 million USD).

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The capacity announced reaches 800,000 units per year, positioning the group on a strategic segment of transport and logistics.

The projects are strategically located across the country to foster regional industrial ecosystems. In Sétif, the Iris group is expanding its factory with a 21 billion dinar investment, targeting an annual production of 800,000 tires, including those for heavy-duty vehicles. In Tafraoui (Oran), El Hadj Arabi Industries, in partnership with China's Doublestar, is undertaking the most ambitious project with a 54 billion dinar investment. This facility aims for an initial capacity of 7 million tires per year, with plans to reach 22 million, creating 2,000 direct jobs.

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With an investment that amounts to 54 billion dinars, the factory plans an initial capacity of 7 million tires per year, called to climb up to 22 million in the long term.

Further south-east, in Temacine (Touggourt), a group of local industrialists is investing over 27 billion dinars in a plant designed to produce 5 million tires annually, starting with heavy-duty tires and later expanding to light vehicles. This project is expected to create 1,720 direct jobs. In Aïn M'lila (Oum El Bouaghi), East Quality is investing 22 billion dinars to establish a unit with a final capacity of 3 million tires per year, generating over 2,000 direct and 2,500 indirect jobs.

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The site aims for a production capacity of 5 million units per year.

Collectively, these four projects are projected to boost Algeria's national tire production capacity to between 19 and 20 million units per year by 2027. This surge in domestic production is anticipated to significantly impact the country's trade balance, reducing tire import bills by an estimated $200 million and generating potential export revenues of $300 million. The initiative aims to stabilize the domestic market and meet high demand, marking a profound reconfiguration of Algeria's manufacturing landscape.

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The project will be developed in two stages, creating more than 2,000 direct jobs and about 2,500 indirect jobs.