The Algerian government has opted to maintain the suspension of operations at the Renault manufacturing plant in Oran.
The decision stems from the French automaker’s alleged failure to fulfill its contractual obligations, particularly concerning local integration requirements. This industrial dispute highlights the lingering diplomatic tensions between Paris and Algiers.
According to former Minister of Industry Ferhat Ait Ali, the Oued Tlelat plant, which commenced operations in 2014, was initially mandated to achieve a local integration rate of 30 percent within five years. However, Renault reportedly never surpassed a 4 percent integration level, a figure deemed unacceptable by Algerian authorities, leading to the suspension of the plant’s operations in 2020.
Another significant point of contention revolves around the project’s financing structure. Of the €170 million invested in the venture, only €10 million was purportedly contributed by Renault, with the substantial remainder sourced from local Algerian banks. Despite this comparatively minor financial stake, the French group maintained a 49 percent share in the joint venture’s capital, while the Algerian party, represented successively by SNVI, then Madar, and the National Investment Fund, held the controlling 51 percent.
Ferhat Ait Ali further accuses Renault of manipulating integration rate calculations by intentionally excluding crucial components such as the engine and gearbox from the assessment.
In February 2025, Renault submitted a new application for approval to resume its activities in Algeria, a request that has not yet been granted. However, the Algerian-French Chamber of Commerce indicates that this rejection is not final. The manufacturer is reportedly engaged in efforts to address the concerns raised by the Algerian authorities in a bid to resolve the impasse.
SL/te/fss/abj/APA