Hyundai Motor's 560 billion won Algeria plant gears up for full production

Hyundai Motor's vehicle assembly plant under construction in Relizane, Algeria, is gearing up for full-scale production. With the establishment of a key production base for the North African and Middle East (MENA) market entering its final stages, Hyundai Motor's global production expansion strategy is gaining momentum.

According to Algeria's Ministry of Industry on Nov. 8, Industry Minister Farid Kourtel met with a delegation from Hyundai Motor Manufacturing Algeria and Korean parts suppliers at the ministry headquarters in Algiers the previous day to discuss preparations for the start of production at the Relizane plant. Senior officials from the Algerian industry ministry also attended the meeting to review technical and logistical readiness for plant operations.

Hyundai Motor announced in August 2026 that it would invest $400 million (approximately 560 billion won) with its Omani partner Saud Bahwan Group to build a vehicle assembly plant in Algeria. The plant, located in the Sidi Khettab industrial zone in Relizane Province, is scheduled to begin operations at the end of this year or early next year, with an annual production capacity of 50,000 vehicles.

Initial production will focus on price-competitive sport utility vehicles (SUVs) and small commercial vehicles. Hyundai Motor plans to expand its production lines to assemble urban compact cars and electric vehicles (EVs) locally. Through this, the company aims to meet domestic demand in Algeria while expanding exports to nearby African countries.

At the meeting, the Algerian government pledged active support for the successful operation of the Hyundai Motor plant. Both sides also discussed in depth ways to build partnerships between Korean parts suppliers and local Algerian companies. The goal is to increase the local production ratio of auto parts, foster an industrial ecosystem, and enhance the competitiveness of Algeria's manufacturing sector through technology transfer.

Minister Kourtel, who took office in September 2026, has been focusing on fostering the automotive industry with the goal of raising the industrial sector's contribution to Algeria's gross domestic product (GDP) to 15% by 2027. In October 2026, he attended the Africa Automotive Investment Forum in Egypt and met with Tarek Ismail Mosaad, head of Hyundai Motor's Middle East and North Africa regional headquarters, to coordinate investment progress.

Hyundai Motor has set a goal of increasing global production by 1.27 million units by 2030, positioning Algeria as a key growth driver alongside North America and India. Algeria's Ministry of Industry said it will strengthen coordination among relevant government agencies to ensure the Hyundai Motor plant begins actual production as soon as possible through parts localization and higher local integration rates.

※ This article is an AI translation of the Korean original published by Korea Credit News; it was checked by automated quality guards and published by the English edition desk.