Manufacturing
Manufacturing makes up about one-fourth of Algeria’s total production of goods. The government controls most of the heavy industries, such as steelmaking, oil refining, and chemical production. Export earnings helped the FLN regime to invest in new factories and equipment during the 1980’s. Modernization efforts, however, have closed some inefficient plants and caused the loss of manufacturing jobs. Nearly all of Algeria’s heavy industries are located on or near the Mediterranean coast. Ironworks and steelworks in the largest cities provide export income, as well as materials for new apartments and commercial buildings. Other plants produce fertilizers, plastics, and chemicals from the by-products of crude oil. Large refineries near the Mediterranean coast process oil and natural gas. Smaller firms – which are more likely to be privately owned – make furniture, plastic goods, textiles, and finished clothing. Food-processing companies produce olive oil, tobacco, and Algerian wine, much of which is exported to France and other European countries.