Ahmed Boudouh Inaugurates Electrical Transformer Manufacturing Plant in Mostaganem

By Dr. Hana Saada

A new electrical transformer manufacturing facility backed by an investment exceeding DZD 50 billion has been inaugurated in Mostaganem, with annual production expected to reach 4,200 units by 2028 as Algeria strengthens domestic industrial capacity, raises local integration rates and expands exports to African and Mediterranean markets.

ALGIERS — Mostaganem Governor Ahmed Boudouh, accompanied by the Director of the Decentralized One-Stop Investment Office of the Algerian Investment Promotion Agency (AAPI), inaugurated on Tuesday a new industrial facility dedicated to the manufacturing of electrical transformers in the municipality of Kheireddine, marking another milestone in Algeria’s industrial expansion strategy.

The production unit belongs to SARL Transfo Electrique Algérie and represents an investment exceeding DZD 50 billion, implemented under the provisions of Investment Law No. 22-18, which forms the legal framework for Algeria’s investment promotion policy.

The facility is designed to produce 1,500 electrical transformers annually during its initial phase of operation. Production capacity is expected to increase to 2,800 units in 2027, before reaching 4,200 transformers per year by 2028, in accordance with the internationally recognized IEC 60076 standards governing power transformer manufacturing.

The project currently provides 25 direct jobs, with employment projected to expand to 90 permanent positions by 2028 as additional production lines become operational.

The company has also adopted an industrial integration strategy aimed at increasing the local content ratio from 40.5% at present to 66% by 2027, reducing reliance on imported components while strengthening Algeria’s domestic manufacturing base.

As part of its long-term commercial strategy, the company plans to export its products to African and Mediterranean markets, supporting Algeria’s broader objective of expanding non-hydrocarbon industrial exports and enhancing the international competitiveness of locally manufactured products.

The manufacturer is simultaneously pursuing certification under ISO 9001 for quality management, ISO 14001 for environmental management and ISO 45001 for occupational health and safety, aligning its operations with internationally recognized industrial standards.

According to the project promoters, the new production facility is expected to reinforce Algeria’s national industrial base while improving the supply of electrical transformers required for power infrastructure, agricultural developments, industrial facilities and residential projects.

The investment also supports the government’s broader industrial policy of strengthening domestic manufacturing capabilities, reducing import dependency, increasing value-added production and consolidating the “Made in Algeria” label as a competitive industrial brand in regional and international markets.