Algiers (AFP) – South Korean carmaker Kia will shut down its assembly line in Algeria from Sunday due to supply chain disruptions after authorities imposed a ban on the import of spare parts.
“Work will be interrupted from May 17” at the factory in the town of Batna, northeast of the capital Algiers, according to an internal company message published by employees on Facebook this week.
Around 1,200 people were employed at Batna, where production was launched in 2018 with a reported capacity of around 50,000 vehicles, although not more than 10,000 were ultimately assembled there.
There was no immediate confirmation from the company.
The decision to halt production comes after the government announced on Sunday it would indefinitely ban the import of spare parts used in assembly lines.
The ban was expected to deal a heavy blow to Algeria’s nascent automobile industry, which revolved around the “semi knocked-down” or