Hanover, Germany – A greenfield tire plant is being built in the eastern Algerian city of Setif with the help of Finnish consulting firm Black Donuts, according to CEO Kai Hauvala.
The plant, which costs about €200-€250 million is financed by “a private consumer products company which is currently active in the electronics segment,” said Hauvala.
Speaking to ERJ during the Tire Technology Expo in Hanover, Germany, the Black Donuts CEO said the plant will, for now, be “small” and will produce passenger car as well as truck and bus tires.
Ground-breaking on the plant was in mid-2016 and machinery is expected to be installed at the plant by the final quarter of 2017.
Finnish automation and materials handling company Cimcorp is supplying machinery to the plant, according to Hauvala.
Reports last year suggested that Algerian energy company Sonatrach was also interested in investing in a separate 5-million unit tire plant in Algeria with the help of “foreign partners”.