HANOVER, Germany—Tire manufacturing is returning to Algeria, thanks to a private investor that is financing a greenfield car and truck tire plant being built in Setif.
The plant, which represents an investment of $250 million to $300 million, is financed by an unnamed "private consumer products company which is currently active in the electronics segment," Black Donuts CEO Kai Hauvala said at the Tire Technology Expo in Hannover.
The plant will, for now, be small and will produce passenger car as well as truck and bus tires, Hauvala said.
Officials broke ground 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 Oy is supplying machinery to the plant, Hauvala added.
Algeria has been without local tire production since 2013, when Michelin closed its plant in Algiers and sold its business there to a local investor.
Located in eastern Algeria, Setif is the capital of Setif Province with more than 275,000 inhabitants.
Pirkkala, Finland-based Black Donuts is an independent consultancy offering turnkey tire plant engineering formed in 2011. Hauvala is a former Nokian Tyres P.L.C. engineer who helped found Black Donuts. He worked for Nokian for more than 16 years in various positions.