Industry minister receives Hyundai delegation over Relizane plant

The industry ministry said on Saturday that it had reviewed progress on Hyundai's car plant in Relizane and the conditions for starting production.

Algérie Eco reported that Farid Kourtel, minister of industry, received a delegation from Hyundai Motor Manufacturing Algeria at his ministry headquarters on Saturday.

The ministry said the meeting was part of follow-up on the investment project. The meeting reviewed progress so far and the conditions needed for production to start.

Present were representatives of Korean companies that make car parts and components, and officials from the ministry.

Talks also covered ways to strengthen links between Hyundai, its Korean suppliers and Algerian subcontracting firms.

The goal is to build a local supplier network, make more components in Algeria and gradually raise the national integration rate.

The ministry said it was ready to support the project and coordinate steps with the other parties to ease the start of production.

The meeting came a little over a month after talks between the minister and Tarek Ismail Mosaad, president of Hyundai Motor for the Middle East and North Africa (MENA) region.

The two men met on 2 October in El Alamein, Egypt, on the sidelines of the African Investment Forum for the automotive sector.

Announced in 2023 with its Omani partner, Bahwan Saud, the project involves nearly $400m of investment and an initial capacity of 50,000 vehicles a year.

The factory is due to be built in the Sidi Khettab zone, in Relizane wilaya.

In August, Hyundai said Algeria was among the countries in its industrial development plan to 2030.

In Seoul on 26 August, at a meeting with investors, Hyundai Motor's chief executive, José Muñoz, said the Algerian unit could start production in late 2026 or early 2027.

At first, the plant would make SUVs and light commercial vehicles. Hyundai then plans to widen the range made locally, with city cars and electric models.

Production still depends on finishing administrative procedures and obtaining the necessary authorisations.

Yahia Bachir, former industry minister, said in January that the availability of industrial land was a constraint for several car projects, including those of Hyundai and Chery.

Hyundai plans to increase local production in Egypt, Saudi Arabia and Algeria. The Algerian site is to become a production base for the national market and other North African markets.