Algeria Plans to Revive Shipbuilding as Defense Industry Grows
Algeria is on the brink of a significant transformation in its shipbuilding sector. The government aims to leverage local shipyards for upcoming procurement deals, marking a shift towards domestic production. This initiative aligns with the Algerian Defense Ministry’s previous announcements regarding the construction of Chinese Type 056 corvettes at local facilities. As the country seeks to modernize its naval capabilities, the focus on local shipbuilding could reshape Algeria’s defense landscape and bolster its economy.
Strategic Partnerships and Local Production
In mid-2020, the Algerian Navy made a pivotal decision by placing an order for six Type 056 corvettes with China’s Hudong Zhonghua Shipbuilding Group, a subsidiary of the China State Shipbuilding Corporation (CSSC). This contract not only included the construction of the vessels in China but also stipulated that some of the corvettes would be built in Algeria. This dual approach aims to enhance local shipbuilding capabilities while maintaining a partnership with a leading global shipbuilder.
In 2023, the Algerian Navy received its first corvette, named El Moutassadi. Analysts suggest that the two-year delay in delivering the remaining vessels is a strategic move. This gap allows for a gradual transition of production from Chinese facilities to Algerian shipyards. The local production will occur under a licensing agreement with China, ensuring that Algeria benefits from advanced technology and expertise.
The Type 056 corvettes are designed for various missions, including patrol, escort, and maritime protection. Each vessel measures approximately 95.5 meters in length and has a displacement of 1,500 tons. They can accommodate a crew of 78 and have a range of 3,500 nautical miles. This modern class of corvettes will significantly enhance the Algerian Navy’s operational capabilities and contribute to the country’s maritime security.
Navantia begins construction of the first of three new corvettes for Saudi
Economic Diversification and Defense Spending
Over the past decade, Algeria has been actively working to diversify its oil-dependent economy. The expansion of the shipbuilding sector is a crucial part of this strategy. Recently, Algerian Transport Minister Saïd Sayoud initiated a study to assess the feasibility of expanding shipbuilding facilities within the country. Algeria’s strategic location in the Mediterranean provides a unique advantage for developing its shipbuilding and ship repair industry.
Moreover, Algeria is keen to strengthen its defense industry by promoting local production of naval platforms. This move aims to reduce reliance on foreign shipyards and enhance national security. The country’s defense budget for 2025 has reached a record $25 billion, positioning Algeria among the top spenders in the Middle East and North Africa. This increase in defense spending is largely driven by the evolving security landscape in the Sahel region and ongoing border tensions with neighboring Morocco.
The modernization of the Algerian military is a key priority. The government is focused on renewing its naval fleet to address rising challenges such as smuggling, illegal migration, and terrorism in the Mediterranean. By investing in local shipbuilding, Algeria not only aims to enhance its military capabilities but also to stimulate economic growth and create job opportunities in the shipbuilding sector.
