Hyundai prepares to start production in Algeria, ministry says

Hyundai is preparing to start car production in Algeria, the Ministry of Industry said after a meeting with the firm on Saturday.

Farid Kourtel, minister of Industry, met a delegation from Hyundai Motor Manufacturing Algeria, according to Algérie 360. The talks reviewed progress on the company's investment and its readiness to move to manufacturing.

Representatives of Korean subcontractors that make spare parts and car components attended, along with officials from the ministry.

The meeting discussed the conditions needed before the launch and how to finish the preparations for production.

It also discussed industrial partnerships between Korean car parts makers and Algerian subcontractors. The partnerships are meant to widen the base of local operators, help localise car parts and raise the national integration rate.

The ministry said it would keep supporting the project and provide the help it needs to meet its requirements. It also said it would strengthen coordination between all parties to speed the project's entry into activity.

For Algerian firms, the project offers a chance to supply parts, since the ministry wants more local subcontractors involved.

Hyundai plans a plant in Algeria by 2027 to assemble cars from parts kits, known as CKD, with the Omani group Suhail Bahwan. The Korea Economic Daily reported that the plant would target large sport utility vehicles (SUVs) and hatchbacks.

The minister had discussed local parts production with approved Algerian car makers in September. In January, Majestic Autos, the exclusive representative of the brand in Algeria, announced partnerships with 10 independent operators to widen its distribution network.

The company is studying the former Volkswagen plant in the Sidi Khettab industrial zone, in Relizane wilaya, as a possible site.