Relizane Automotive Plant Set for Hyundai Production Launch

South Korean automotive giant Hyundai has announced new details for its upcoming industrial facility in Algeria, confirming an investment of $400 million. The company's CEO, José Muñoz, unveiled the roadmap during the traditional Hyundai Investor Day 2026 in Seoul, outlining that production is slated to commence between late 2026 and early 2027. The plant is strategically located at the Sidi Khettab industrial site in the wilaya of Relizane, a complex set to be revitalized for this major automotive project.

This significant venture will operate as a joint venture between Hyundai and its Omani partner, Bahwan Saud. The facility is designed to achieve an annual production capacity of 50,000 vehicles. Initial output will focus on affordable SUVs and light utility vehicles, with plans to later diversify into city cars, including the i10, and electric vehicles. The manufacturing process will adopt the Complete Knock Down (CKD) method, integrating paint, welding, and assembly lines from the outset, with concrete steps already underway to engage local equipment manufacturers to ensure compliance with national integration requirements.

The establishment of this plant underscores Algeria's pivotal role in Hyundai's ambitious industrial trajectory for the Middle East and North Africa (MENA) region. Hyundai identifies the MENA zone as one of its most profitable markets, aiming to increase its regional production capacity to 1.27 million units by the end of the decade. The decision to invest in Algeria reflects the nation's promising market, strategic geographic location, competitive energy resources, and considerable human potential, including engineers, technicians, and a young workforce ready for industrial challenges. This project represents a substantial boost to Algeria's industrial sector and economic development.