Elsewedy Electric has submitted a formal feasibility study to the Prime Minister’s Office in Algeria regarding the construction of a new assembly plant. This submission serves as the primary mechanism for the company to formally propose the development of a facility dedicated to the production of electric and hybrid vehicles within the country. This submission marks an initial step for the company as it seeks to expand its automotive manufacturing footprint in the region. The proposal follows internal evaluations conducted by the organization to determine the viability of local assembly operations. Officials at the Prime Minister’s Office are now reviewing the technical and financial details provided in the study to assess the potential impact of the project on the national industrial sector. No timeline for a final decision has been released by the government.
The submission of the feasibility study notes the strategic interest Elsewedy Electric holds in developing specialized automotive manufacturing capabilities. By engaging directly with the Prime Minister’s Office, the firm intends to align its manufacturing objectives with the current industrial policies of the state.
Production and Export Targets
Elsewedy Electric targets a specific production split for the proposed facility, planning for 80% of output to be electric vehicles and 20% to be petrol vehicles. Technical projections indicate the company aims for a 50-60% local integration rate for all vehicle assembly conducted at the site. This integration rate is intended to ensure that a significant portion of the vehicle components are sourced or manufactured within Algeria.
International distribution remains a priority for the project. Elsewedy Electric plans to export 25% of the plant's total output to approximately 20 international markets. The list of identified destination countries includes the US, Italy, Saudi Arabia, and Chile. Financial objectives for these trade operations are clearly defined, as the project targets USD 25-30 mn in annual export revenues. These figures represent the primary performance goals set by the company for the potential Algerian manufacturing hub. The company views these international markets as essential for achieving the necessary scale for the proposed assembly plant.
Existing Algerian Investment Footprint
Elsewedy Electric maintains a long-term infrastructure presence in Algeria spanning 15 years, with cumulative investments valued at USD 20 bn. This operational history serves as the foundation for the company’s ongoing activities within the country. The scale of this existing investment shows the firm's established commitment to the Algerian market.
Building on this portfolio, the firm introduced a proposal in May 2026 for an additional USD 1.3 bn investment package. This expansion plan targets development across four specific sectors: industry, housing, tourism, and agriculture. These proposed projects aim to diversify the company’s existing economic footprint in Algeria beyond its established infrastructure operations. By broadening its scope to include these four sectors, Elsewedy Electric seeks to enhance its contribution to the national economy while leveraging its 15 years of experience operating within the country. The company continues to await further feedback from relevant government departments regarding the implementation of this multifaceted investment package.
