China-backed tyre factory launched in Algeria

A large-scale tyre factory has officially launched in Oran, Algeria, following a partnership between Chinese tyre giant and an Algerian firm, the Algérie 360 reported on July 20th.

The facility, located in the Tafraoui industrial zone, was inaugurated on July 20th and is backed by an estimated 54 billion dinars in investment.

The plant spans 16.4 hectares and is projected to manufacture up to 7 million tyres annually for both light and heavy vehicles, with the potential to triple output over time.

According to the Algerian Investment Promotion Agency (AAPI), 90% of production will be exported to regions including Africa, Europe, the Middle East, and the Americas. Just 10% is intended for the domestic market, largely to support Algeria’s emerging vehicle assembly operations.

“This is a structuring investment with local and national economic dimensions,” the AAPI said in an official statement. Authorities claim the project will generate 2,000 direct jobs, with thousands more created indirectly through subcontracting and supply-chain development.

The Chinese partner, Doublestar, is a majority shareholder in KUMHO Tyre, a global player in the industry. Officials say the cooperation will transfer advanced manufacturing know-how to  local firm El Hadj Larbi Industries, and accelerate the country’s industrial modernization through Industry 4.0 technologies.

However, questions remain over how much real control and long-term benefit Algeria will retain from the venture.

While the plant is being presented as a symbol of economic sovereignty, the heavy focus on exports and foreign investments raises concerns that the country may remain a low-cost production base rather than an autonomous industrial actor.

Despite these uncertainties, Algerian officials are optimistic the factory could eventually anchor a broader ecosystem for automotive components in the region.

Algérie 360, Maghrebi