LONDON — A tire plant under construction in Algeria is expected to start production in the third quarter, according to project support firm Black Donuts Engineering Inc.
The first phase of the project — funded by Algerian consumer electronics and household appliances group Saterex-Iris E.u.r.l. — will see the production of roughly 2 million passenger car tires a year, Black Donuts principal Kai Hauvala said.
There is "most probably" also a plan to expand the car tire capacity and go into truck/bus tire production at a later stage, Mr. Hauvala added. Pirkkala, Finland-based Black Donuts is offering technical support for the project.
Saterex has budgeted $250 million to $300 million to build the plant in Setif, Algeria. It marks the return of tire production to Algeria five years after Michelin Group closed its plant there in 2013.
Finnish automation and materials handling company Cimcorp Oy is also involved, supplying machinery to the plant.
Saterex plans to market the plant's products under its Iris brand.