Opel Moves Toward Local Engine Production in Algeria Under Strategic Industrial Agreement
German automaker Opel Automobile and Algerian company AGM Holding signed a memorandum of understanding in Berlin on Friday to localise the production of the first Opel engine in Algeria, according to a statement issued by the Stellantis Group.
The agreement was signed by Opel Automobile Chief Executive Officer Florian Huettl and AGM Holding General Manager Mohamed Faouzi Khebir on the sidelines of the Algerian-German Economic Forum held in Berlin.
The signing took place during the official visit of Algerian President Abdelmadjid Tebboune to Germany, at the invitation of German President Frank-Walter Steinmeier. The agreement represents another important outcome of the presidential visit and reflects Algeria’s growing ability to attract major international industrial partners.
According to Stellantis, the engine production project is part of a broader plan to establish an integrated Opel vehicle manufacturing plant in Algeria. The project is based on the principle of producing locally for the domestic market, allowing the German brand to build a sustainable and long-term presence in Algeria.
Florian Huettl said that the two partners discussed with President Tebboune the strategic importance of the Algerian market, which he described as offering significant potential for Opel.
He added that the memorandum of understanding marks an important step in Opel’s strategy to expand its international presence beyond Europe. The company aims to make its German engineering expertise and mobility solutions available to a growing number of customers worldwide.
Huettl also stressed that the agreement lays the foundations for long-term cooperation with Algerian partners and supports the shared ambition of creating sustainable industrial value.
The project is expected to contribute to the development of Algeria’s automotive industry by strengthening local production capacity, encouraging industrial integration and supporting the transfer of technical expertise.
It could also create new employment opportunities, develop specialised skills and open the way for a stronger local supplier network.
The agreement is fully aligned with the Algerian government’s strategy, under President Tebboune’s leadership, to rebuild a productive national automotive sector based on local manufacturing rather than simple vehicle imports.
In a symbolic gesture highlighting the importance of the presidential visit, Opel raised the Algerian flag at the company’s headquarters and production plant.
The initiative reflects the growing confidence of major international manufacturers in Algeria’s economic reforms, investment climate and industrial ambitions.
