Tosyali Algeria to Supply Premium Steel to Automotive, Appliance Industries Starting July
Image: Echorouk
Takeaway
Tosyali Algeria's move to supply premium steel domestically could significantly impact the Algerian automotive and appliance sectors by reducing reliance on imports and potentially lowering production costs. Investors should monitor the progress of Tosyali's expansion and its ability to meet the quality demands of these key industries, as this could drive growth in related sectors and create new investment opportunities in the Algerian manufacturing landscape.
Tosyali Algeria is set to begin supplying premium, high-quality steel products to Algeria's automotive and home appliance industries starting in July 2026. This initiative is part of a strategic plan to advance the Algerian iron and steel industry, focusing on four key pillars. The plan includes introducing high-quality steel products, transitioning from raw material extraction at Gara Djebilet to in-country processing, and producing competitive semi-finished products for export. Tosyali Algeria's broader investment program is valued at $2.5 billion.
The move towards domestic steel production aligns with Algeria's efforts to diversify its economy and reduce reliance on hydrocarbon exports, a strategy that has been gaining momentum in recent years. In 2025, Algeria saw a significant increase in vehicle sales after the government eased import restrictions, with sales surging 345.3% to 113,122 units. This was followed by a further increase of 58.5% to 179,332 units in 2024, before dropping to 102,651 units in 2025. The automotive sector had faced difficulties, marked by the halting of new vehicle imports in 2017 and the closure of assembly plants in 2019.
Tosyali Algeria has a flat steel production capacity of 1.6 million tons, with 700,000 tons allocated for automotive-grade steel. The company aims to meet strict surface quality standards for the automotive sector. Tosyali Holding has a liquid steel production capacity of 15 million tons and operates nearly 50 facilities across three continents. Tosyali Algeria operates five rolling mills with a total capacity of 7.2 million tonnes per year, including a wire rod mill (0.5 million tonnes), rebar mills (2.7 million tonnes) and a hot rolled coil mill (4 million tonnes).
The expansion of Tosyali Algeria is expected to benefit both the automotive and home appliance sectors by providing a local source of high-quality steel, reducing the need for imports. This could lead to lower production costs and increased competitiveness for Algerian manufacturers. The additional steel production capacity is also intended to meet the demand for raw materials used in the production of oil and gas pipes. Tosyali Holding is widening its footprint across Africa with new projects in Libya and Angola, including an 8.1 million-ton Direct Reduced Iron (DRI) facility in Libya and the development of iron ore reserves of 2 billion tons in Angola.
Tosyali Algeria plans to expand its total capacity by an additional 3 million tons, aiming to double daily output from 50,000 to 100,000 tons within 30 months. Once completed, Tosyali Algerie is expected to reach 9.5 million tons of annual capacity, becoming a fully integrated hub across all steel segments. Deliveries of automotive-grade steel are scheduled to begin in the third quarter of 2026.