Algeria, increasingly attractive to global economic powers, is bolstering its industrial landscape with a major project. In Oran’s El Hamoul industrial zone, a ambitious tire factory is taking shape through a partnership between the Algerian company Société El Hadj Larbi Industrie (SHLI) and the Chinese giant Double Star Tire. Valued at $380 million, this initiative aims to meet the growing domestic market demand while enhancing Algeria’s global standing, with a strategic target completion by 2026.
Oran: China and Algeria Invest $380 Million in Next-Generation Tire Factory
The factory’s construction, launched with great fanfare, marks a milestone in Algeria’s industrialization. On June 22, SHLI announced progress, unveiling the second phase: the installation of the rubber mixing unit, a critical component of tire production. This phase has been entrusted to the Algerian firm EG REKIMA following a thorough evaluation of candidate proposals, reflecting the project’s rigorous process and commitment to meeting economic and technological expectations.
Beyond this milestone, the project promises over 2,000 direct jobs, a significant boost in combating unemployment and achieving industrial self-sufficiency. With a total investment of approximately 50 billion dinars ($380 million), this strategic partnership has the potential to transform Algeria’s automotive sector.
Production of 7 Million Tires by 2026, with Global Ambitions
The factory’s first phase will produce 7 million tires annually, including 1 million for heavy vehicles—a figure set to grow. The ultimate goal is to reach 22 million units per year once all project units are fully operational across the country. As a key player in North Africa, Algeria aims to leverage this industrial capacity to boost exports and energize its expanding automotive industry.
“This factory will cover a large portion of local market needs while contributing to Algeria’s export growth,” SHLI emphasized. Beyond tire production, the project symbolizes a political drive for self-sufficiency and a competitive stance in regional and international markets.
Cutting-Edge Technology for a Promising Industrial Future
A standout feature of this factory is its adoption of Industry 4.0 principles, integrating artificial intelligence and robotics. Promising “full automation, optimal efficiency, cost reduction, and production quality meeting international standards,” the project leverages advanced technologies. Automated production lines and real-time management systems position this initiative as a model of innovation in Algeria’s industrial sector. These advancements enhance competitiveness on the global stage and set Algeria apart in the industry.
