In a significant step to strengthen the automotive spare parts and equipment manufacturing sector and diversify local products, the El Haj El Arabi Industrial Company (SHLI) announced its entry into the tire manufacturing sector through a major project to build a new factory located in the El Hamoul Industrial Zone in the Tafraoui municipality in Oran Province.
According to a statement issued by the company, this factory is one of the largest industrial projects currently underway in Algeria, with a massive investment estimated at 50 billion Algerian dinars. The project aims to transfer Fourth Industrial Revolution technologies to Algeria, including artificial intelligence and robotics, in partnership with the Chinese company Doublestar Tire. The project aims to achieve comprehensive automation in production, increase efficiency, reduce costs, and ensure high quality that matches international standards.
The initial production capacity of this factory is 7 million tires annually, including one million tires for heavy vehicles. The company hopes to later increase production to 22 million tires annually after the completion of other production units to be located across several regions in Algeria.
Construction of the factory is expected to be completed by the end of 2026, and the project is expected to contribute to the creation of more than 2,000 direct jobs. The factory will help meet a significant portion of local market needs, support automotive manufacturing projects in Algeria, and expand the country’s export capacity in this field.
To accelerate the pace of work, the implementation of the second phase of the project has been awarded to EG REKIMA, an Algerian company specializing in the construction sector. This was done following a comprehensive study and careful evaluation of bids submitted by several national and foreign companies. EG REKIMA was selected to undertake the construction of the large rubber mixing workshop, one of the project’s core units.
The company also intends to soon announce new tenders for the construction of the large manufacturing workshop and the raw materials workshop, as part of its strict commitment to the highest technical and engineering standards to ensure the success of this strategic project, which represents a qualitative leap in the Algerian industrial sector.
For your information, Iris, a tire manufacturer, dominates the local market. However, due to the import ban, there has been a shortage of tires, especially those used for trucks, buses, and large vehicles.
Iris is unable to meet all the needs of the Algerian market, and it does not manufacture all types of tires. The fact that the import ban is incomprehensible and there is no justification for this action, as one of the most common causes of traffic accidents is worn-out tires.
