Hyundai car assembly plan in Relizane targets early 2027

A new car production project in Relizane, linked to the South Korean carmaker Hyundai and the Omani group Suhail Bahwan, is aimed at starting between January and March 2027.

DNAlgerie reported that the timetable was discussed as part of closer economic ties between Algiers and Seoul.

The project was among the files at the latest Algerian-South Korean economic forum. The forum was organised jointly by the South Korean embassy and the Korea Trade-Investment Promotion Agency (KOTRA).

Assembly plans

The South Korean outlet Korea Economic Daily reported that the new facility would host CKD assembly lines.

CKD stands for completely knocked down, a process that assembles vehicles locally from parts and components imported separately.

The range under consideration includes high-end SUVs and large hatchback saloons.

The former Volkswagen site in the Sidi Khettab industrial zone, in Relizane wilaya, is among the locations studied. The available information does not yet confirm that the site will be used.

The timetable does not mean that all industrial and operational details are settled. The project must still specify production capacity, the models concerned and the level of local integration expected.

The Tiaret plant

The Ministry of Industry said, in a reply to Parliament, that the former Hyundai plant in Tiaret was in the hands of the competent sector commission.

The stated aim is to bring the site into a public company soon, to restart its production activity.

Several former car production sites are being given new uses after the difficulties faced by early car assembly ventures in the country, DNAlgerie reported. The Tiaret file remains separate from the Relizane project, although both concern the restart of existing industrial sites.

Wider cooperation

Cooperation between the two countries is not limited to cars.

Omar Rekkach, director general of the Algerian Investment Promotion Agency (AAPI), said at the forum that reforms had been launched to improve the business climate. He said these reforms were also intended to ease the arrival of foreign investors.

He also said the agency was ready to help South Korean operators with their procedures.

According to DNAlgerie, the Algerian authorities list technology transfer, local subcontracting and job creation as the expected benefits of such partnerships.