Algeria’s Shipbuilding Industry: A New Era of Growth

Algeria’s shipbuilding industry is on the brink of a major transformation, with the government eyeing local shipyards for upcoming procurement deals. The Algerian Defense Ministry has unveiled plans to construct Chinese Type 056 corvettes at domestic facilities, marking a significant shift towards bolstering the country’s naval capabilities.

In a strategic move, the Algerian Navy recently commissioned six Type 056 corvettes from China’s Hudong Zhonghua Shipbuilding Group, a subsidiary of China State Shipbuilding Corporation (CSSC). The contract includes a provision for the construction of some vessels at Algerian yards, showcasing a collaborative effort to enhance the nation’s shipbuilding capabilities.

The first of the corvettes, named El Moutassadi, was delivered to the Algerian Navy in 2023. Analysts speculate that the staggered delivery schedule for the remaining vessels is part of a deliberate strategy to facilitate the transition of production from Chinese to Algerian shipyards. Local production will be carried out under a licensing agreement with China, highlighting Algeria’s commitment to fostering indigenous shipbuilding expertise.

A New Wave of Innovation

The Type 056 corvette class is specifically designed for patrol, escort, and maritime protection missions. With a length of approximately 95.5 meters and a displacement of 1,500 tons, these corvettes boast a crew capacity of 78 personnel and a range of 3,500 nautical miles. The introduction of these advanced vessels signifies Algeria’s strategic focus on modernizing its naval fleet to effectively combat emerging security challenges.

Paving the Way for Economic Diversification

Amid efforts to diversify its economy beyond oil dependency, Algeria is actively exploring avenues for expanding its shipbuilding sector. Transport Minister Saïd Sayoud has initiated a study on the feasibility of expanding shipbuilding facilities within the country, leveraging its strategic location in the Mediterranean for enhanced maritime capabilities.

Empowering Local Defense Industry

Algeria’s heightened defense expenditure for 2025, totaling a record $25 billion, underscores its commitment to modernizing and strengthening its military capabilities. The focus on empowering local production of naval platforms reflects a strategic shift towards reducing reliance on foreign suppliers. This initiative aligns with Algeria’s broader defense strategy, particularly in response to evolving security threats in the Sahel region and border tensions with neighboring Morocco.

The ongoing fleet renewal for the Algerian Navy is driven by the need to address challenges such as smuggling, illegal migration in the Mediterranean, and counter-terrorism measures. By investing in indigenous shipbuilding capabilities, Algeria aims to enhance its maritime security posture and assert its position as a regional maritime power.