The Renault plant in Oran has not produced vehicles since 2023
The Renault plant in Oran (Algeria) has been at a standstill since 2023, and several factors explain this situation:
1. New local requirements : The Algerian government now requires a local integration rate equal to or greater than 30% of parts in produced vehicles. Renault, which used semi-assembled kits (SKD) from Turkey, with a local integration rate of less than 10%, struggled to adapt to this constraint. Between 2020 and 2023, the Oran plant therefore operated at a reduced capacity.
2. Administrative blockage : Renault has been waiting for several years for official approval from the Algerian Ministry of Industry to restart its activities. Despite investments to comply with the new regulations, authorization has been slow in coming.
3. Diplomatic tensions : relations between France and Algeria have been experiencing a new period of tension for several months (the Western Sahara affair), which is hampering bilateral industrial projects, such as that of Renault.
4. Increased competition : other carmakers such as Stellantis have established themselves in compliance with the new rules (local integration rate equal to or greater than 30%), which has put Renault in difficulty on the local market.
Despite rumors of the permanent closure of its Oran plant, Renault has submitted a new application for approval and implemented a redundancy plan to preserve jobs in preparation for a possible restart. The carmaker hopes to restart production with new models and an adequate integration rate, but everything will depend on the decision of the Algerian authorities. Positive signals seem to be emerging: recent meetings between Algerian and French officials have revived hopes of a restart. The Algerian Minister of Industry even mentioned an imminent resumption of the plant. Renault therefore hopes to be able to resume production by the end of 2025.
