Strategic Leap in Algerian Industry: Algeria, China Launch $380 Million Tire Manufacturing Megaproject in Oran

Strategic Leap in Algerian Industry: Algeria and China Launch $380 Million Tire Manufacturing Megaproject in Oran

✍️ BY: Dr. Hana Saada

With an initial capacity of 7 million units and a targeted output of 22 million annually, the joint venture between El Hadj Larbi Industries and Chinese conglomerate DoubleStar is poised to reshape Algeria’s industrial landscape and boost its trade balance.

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Algiers, Algeria– Sunday, July 20, 2025 | In a move signaling Algeria’s accelerating industrial transformation, the foundation stone for a vast tire manufacturing plant was officially laid on Sunday in Oran. The ambitious project, valued at 50 billion Algerian dinars (approximately $380 million USD), is the result of a strategic partnership between Algeria’s El Hadj Larbi Industries and Chinese industrial heavyweight DoubleStar, a global leader in tire manufacturing.

The high-level ceremony marking the launch of this mega-infrastructure was attended by Omar Rekkache, Director General of the Algerian Investment Promotion Agency (AAPI), and Kamel Moula, President of the Algerian Economic Renewal Council (CREA), alongside the Wali of Oran and key industrial figures.

Once operational, the factory will boast an initial production capacity of 7 million tires annually, with a phased expansion plan aiming to reach 22 million units per year, placing Algeria among the continent’s major producers of automotive components.

A Game-Changer for Algeria’s Economic Sovereignty

The economic implications of this project are far-reaching. It is expected to slash Algeria’s tire import bill by $200 million annually, a move that aligns with national objectives to curtail non-strategic imports and encourage local manufacturing. More significantly, the plant is projected to generate approximately $300 million in annual export revenue, further bolstering Algeria’s hard currency reserves and positioning the country as an exporter in a market traditionally dominated by Asian and European suppliers.

In his address, Omar Rekkache hailed the project as “a tangible expression of Algeria’s new investment policy and its pivot toward high-value industrial partnerships.” He emphasized that this initiative illustrates how Algeria is “reclaiming its role as an industrial hub and gateway to Africa.”

Algeria-China Industrial Synergy

For his part, Kamel Moula praised the synergy between the Algerian and Chinese partners, noting that “the integration of DoubleStar’s advanced technological expertise with Algeria’s industrial ambition will result in a facility that not only serves domestic needs but competes globally.”

This joint venture is also expected to create hundreds of direct and indirect jobs, contribute to the development of a broader automotive ecosystem, and attract secondary industries in rubber, mechanical engineering, and logistics.

This initiative comes at a time when Algeria is actively seeking to diversify its economy and reduce its reliance on hydrocarbons. The Oran tire factory is emblematic of this shift—anchored in technology transfer, export orientation, and the construction of a sovereign, resilient industrial base.

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