Hyundai Motor Company plans to build a vehicle assembly plant in Algeria, as the South Korean automaker looks to accelerate its expansion in markets across the Middle East and Africa, according to unconfirmed reports citing industry sources.
Hyundai’s local subsidiary, SARL Hyundai Motors Manufacturing Algeria, is reported to have teamed up with Oman’s Saud Bahwan Group to build a US$ 400 million vehicle assembly plant in the country. The automaker is still awaiting final government approval for the plant after securing marketing approval for its vehicles in May.
One of the locations said to be under consideration for the new facility is the site of a former Volkswagen plant in Sidi Khettab, Relizane Province, some 300 km west of the capital city of Algiers. The plan is to assemble compact hatchbacks and SUVs from completely knocked down (CKD) kits starting in 2027, according to the reports.
If approved, the Algerian plant would become Hyundai’s fourth vehicle assembly facility in Africa, after facilities in South Africa, Ghana and Ethiopia. Hyundai also assembles vehicles in Egypt through its local partner GB Auto.
Hyundai had previously partnered with Global Group, an Algerian private industrial group, in 2018 to build a commercial vehicle plant in the country, but these plans were scrapped in 2020 following political instability there.
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