Italian Industrial Giant Idrobase Relocates Key Operations from China to Algeria, Reinforcing Bilateral Ties and Strengthening Africa-Focused Expansion

BY: Dr. Hana Saada

Algiers, Algeria | January 31st, 2025 — The distinguished bilateral relations between Algeria and Italy have borne fruit in the form of an investment project, further solidifying Algeria’s role as a strategic industrial hub in the Mediterranean and African regions. In a decisive move reflecting shifting global economic dynamics, the internationally renowned Italian group Idrobase, a leader in the production of compressed water systems, cleaning equipment, and air purification technology, has announced the transfer of a significant portion of its manufacturing activities from Ningbo, China, to Algeria.

This landmark decision, officially disclosed by Bruno Ferrarese, co-owner of Idrobase, underscores Algeria’s growing appeal as a preferred industrial and export platform. The company’s new facility in Algeria is set to become a central pillar in its African growth strategy, serving both as a base for regional business development and a springboard for exports across the continent.

Algeria: A Strategic Alternative to China

According to multiple Italian media sources, the relocation of part of Idrobase’s production from China to Algeria is driven by several key factors. Chief among them is Algeria’s advantageous geographical proximity to Italy, which ensures a smoother and more efficient logistical connection between the two countries. Additionally, Algeria is widely recognized as the gateway to the African market, offering businesses unparalleled access to a rapidly expanding economic landscape.

Beyond geographical advantages, Algeria presents a compelling case for foreign investment due to its highly educated workforce, modern infrastructure, and competitive labor costs. These elements, combined with the country’s ambitious industrial policies, create an environment conducive to long-term, sustainable economic growth.

A Bold Move in Line with Italy’s “Mattei Plan” for Africa

The decision by Idrobase aligns with Italy’s broader strategic vision under the Mattei Plan, a €5.5 billion initiative launched by Italian Prime Minister Giorgia Meloni to foster economic partnerships across Africa. The plan, which encompasses projects in Algeria, Egypt, Tunisia, Morocco, and Libya, aims to create value by engaging local populations, stimulating economic opportunities, and addressing the root causes of poverty and irregular migration.

The Mattei Plan is structured around six core pillars: health, education and training, agriculture, water resources, energy, and infrastructure development. Within this framework, Idrobase’s investment in Algeria contributes to the plan’s objectives by fostering industrial growth, creating skilled employment opportunities, and reinforcing Algeria’s role as an African industrial powerhouse.

Strategic Industrial Vision and Competitive Edge

Commenting on this major shift, Bruno Ferrarese emphasized the necessity of adapting to the evolving global economic landscape.

“In anticipation of new global scenarios, we have been redefining our international strategies. While reaffirming our strong presence in China and the United States, we have decided to expand into Africa’s industrial sector, a continent with enormous potential. This step aligns with the Italian government’s broader strategy to deepen ties with Africa and develop sustainable partnerships,” he stated.

Meanwhile, Bruno Gazzignato, the second co-owner of Idrobase, highlighted Africa’s vast territorial expanse and the need for tailored industrial solutions to meet diverse market needs.

“The unique characteristics of Africa’s expansive geography require products specifically designed for local markets. That is why we have chosen to transfer part of our manufacturing activities from Idrobase Ningbo’s Chinese facility to Algeria,” he explained.

Crucially, the company’s Algerian facility will operate under an advanced assembly model, integrating key components manufactured in Italy while partnering with local Algerian subcontractors. This hybrid production approach is set to deliver high-quality products at competitive prices, making them more accessible to the African market.

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